Reston telemedicine company to go public
SOC Telemed to be listed on Nasdaq through merger with Healthcare Merger Corp.
Reston-based telemedicine provider SOC Telemed announced Monday it plans to go public through a merger with a “blank check” company, Healthcare Merger Corp. (HCMC) — a transaction that would value SOC at $720 million.
The combined company will operate as SOC Telemed and be listed on the Nasdaq. HCMC is a Nasdaq-listed public investment company.
“This business combination strengthens SOC Telemed and will allow it to further penetrate the broad and fast-growing acute telemedicine market,” SOC interim CEO Paul Ricci said in a statement. “Telemedicine is at a pivotal moment as the country continues to navigate the COVID-19 crisis. As hospital leaders struggle with the problems of acute capacity management, physician scarcity and cost optimization, it has become clear that virtual care will continue to be a critical component of the health care industry’s ability to deliver better care to patients.”
Its management team will be led by Ricci, President John Kalix and Chief Operating Officer and Chief Financial Officer Hai Tran. At the completion of the transaction, Ricci will step down as interim CEO and HCMC President and CEO Steve Shulman will become SOC Telemed’s chairman of the board of directors and Kalix will be become CEO of the company. Tran will continue as COO and CFO. Private equity firm Warburg Pincus LLC will remain as SOC’s largest shareholder.
“SOC operates a scaled and differentiated acute care telemedicine platform,” Shulman said in a statement. “This transaction will enable the company to capitalize on substantial opportunities to expand and grow and benefit from the accelerated adoption of telemedicine as a result of COVID-19.”
SOC provides services to 847 facilities, which includes 543 acute care hospitals in 47 states.