What You Should Know:
– Digital health company Sharecare and special purpose acquisition company (SPAC), Falcon Capital Acquisition Corp, today announced an agreement to merge to go public on the NASDAQ under the ticker symbol SHCR at enterprise value of $3.9B.
– The transaction is expected to be funded through a combination of Falcon’s $345 million of cash in trust (assuming no redemptions) supported by a $425 million fully committed PIPE at $10.00 per share and the Anthem investment.
– Jeff Arnold, digital health pioneer and founder of WebMD, will continue to lead the company as CEO and chairman.
Sharecare, the digital health company that helps people manage all of their health in one place, and Falcon Capital Acquisition Corp., a special purpose acquisition company (SPAC), announced today that they have entered into a definitive merger agreement for go public. The new company will become Sharecare, Inc. and be listed on NASDAQ under the ticker symbol SHCR; and is expected to have an initial enterprise value of $3.9B.
What Is a Special Purpose Acquisition Company (SPAC)?
A special purpose acquisition company (SPAC) known as a “blank check company” is a formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Sharecare plans to leverage approximately $400M in growth capital on the balance sheet to drive sustained growth, sales force expansion, new digital offerings, and M&A including the completion of the recently announced doc.ai acquisition.
As part of the SPAC IPO deal, Falcon Capital Acquisition Corp., led by Alan Mnuchin, is expected to own approximately 20% of the new company inclusive of the PIPE investors; Mr. Mnuchin, along with Jeff Sagansky, an independent director on Falcon’s board of directors, will join Sharecare’s board of directors. The SPAC IPO is expected to be funded through a combination of Falcon’s $345 million of cash in trust (assuming no redemptions) supported by a $425 million fully committed PIPE at $10.00 per share and the Anthem investment. Anthem will expand its strategic partnership with Sharecare as Sharecare continues the development of products and services to enhance the healthcare experience. Both Sharecare and Falcon plan to donate over $4 million in the surviving company’s stock to Sharecare’s charitable foundation to support well-being initiatives – from global to hyperlocal – that embody the company’s spirit of “sharing care” and demonstrate a commitment to positively impacting community health.
Sharecare Background
Founded in 2010, Sharecare provides the messaging, motivation, management, and measurement tools to help individuals, workforces, and communities optimize their comprehensive well-being. Sharecare’s interoperable virtual care platform is purpose-built to seamlessly connect stakeholders to the health management tools they need to drive engagement, establish sustained participation, increase satisfaction, reduce costs, and improve outcomes. Whether a person’s path to Sharecare originates as an employee, health plan member, patient, community member, or self-motivated individual, Sharecare brings together scientifically validated clinical programs and engaging content to deliver a comprehensive, personalized experience for each user.
Sharecare has a diverse, experienced leadership team with a unique blend of expertise across technology, media, and healthcare. The business is well positioned with a largely recurring revenue model that will drive anticipated 20% sustainable year-over-year growth and gives the business multiple paths to over $1 billion in medium-term revenue. Jeff Arnold, digital health pioneer and founder of WebMD, will continue to lead the company as CEO and chairman.
Jeff Arnold, founder, chairman, and chief executive officer of Sharecare, said, “We started Sharecare to leverage innovations in consumer technology – specifically the smartphone – to create a frictionless experience that engages people across the dynamic continuum of their healthcare needs. By integrating fragmented point solutions and bringing together stakeholders across the healthcare ecosystem into one connected virtual care platform, we believe that Sharecare is uniquely positioned to transform the way people access, providers deliver, and employers and health plans administer high quality, cost efficient healthcare. Strategic partners, Anthem and Digital Alpha, will enable continued innovation in delivering high-impact solutions at scale. We believe Falcon will be invaluable as we pursue this next phase for Sharecare.”
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC acted as financial advisors and King & Spalding LLP acted as legal counsel to Sharecare.
