SOC Telemed, an acute care telemedicine provider, today announced that it has entered into a definitive agreement to be acquired by Patient Square Capital, a health care investment firm.
The news comes 15 months after SOC went public via Healthcare Merger Corp. At that time, in October 2020, the enterprise value of the combined company was estimated at $720M. Since then, SOC Telemed shares had plunged into penny-stock territory, closing at 71 cents on Tuesday.
But the stock popped on the announcement of the deal with Patient Square and last traded today at $2.80.
Under the terms of the agreement, SOC Telemed stockholders will receive $3 in cash per share of Class A common stock. The purchase price represents a premium of approximately 366.1% over SOC Telemed’s closing share price on Feb. 2, the last full trading day prior to the transaction announcement. That would give the deal an implied value of $302 million.
SOC Telemed provides acute telemedicine technology and solutions to hospitals, health systems, post-acute providers, physician networks, and value-based care organizations.
If approved, the deal is expected to close in the second quarter.
The agreement includes a 30-day “go-shop” period, which allows the SOC Telemed board and its advisors to actively initiate, solicit and consider alternative acquisition proposals from third parties. Read more.
