DFP Healthcare Acquisitions announced today that it has entered into a definitive agreement for a business combination with The Oncology Institute.
The transaction values the combined company at a pro forma enterprise value of approximately $842 million and implies a multiple of 2.4x estimated 2022 revenue. The current equity holders of The Oncology Institute, which include Management, Havencrest Capital Management, M33 Growth, and ROCA Partners, will be entitled to receive an additional earn out payment of up to 12.5 million shares of common stock.
In addition to the approximately $230 million held in DFP’s trust account, healthcare investors including Fidelity Management & Research Company, Deerfield Management and Redmile Group have committed to a $275 million PIPE.
Assuming no redemptions of DFP public shares, current equity holders of The Oncology Institute will collectively own 48%, Deerfield will own approximately 14%, other DFP stockholders (including other PIPE investors) will own 33%, and DFP’s sponsor will own 5% respectively.
DFP estimates that, assuming no redemptions of DFP shares, the Company will have an initial market capitalization of approximately $1.06 billion, with approximately $225 million of cash on the balance sheet
If approved by shareholderrs, following the business combination The Oncology Institute will list on the Nasdaq under TOI.
Founded in 2007, The Oncology Institute of Hope and Innovation is one of the largest community oncology practices in the United States.
The SPAC is sponsored by an affiliate of Deerfield Management Company and Richard Barasch, a veteran healthcare public company executive and investor. Read more.
