P3 Health Partners said on Tuesday it had agreed to go public through a merger with blank-check firm Foresight Acquisition Corp in a deal valuing the combined company at $2.3bn, including debt.
The health population management company said the deal is expected to provide it with cash proceeds of at least $180m and includes more than $200m in private investment from Fidelity Management & Research Company LLC and Janus Henderson Investors, among others.
Including the cash proceeds, the estimated equity value of the combined company is $2.4bn, P3 Health said.
P3 Health added that healthcare industry veteran Mark Thierer, the former chief executive officer of OptumRx, the pharmacy benefit manager of UnitedHealth Group Inc, is expected to become the chairman of the public company’s board.
Special purpose acquisition vehicles (SPACs), Wall Street’s biggest gold rush in recent years, are shell companies that raise funds through an initial public offering (IPO) to acquire a private company and take it public.
The company said P3’s existing members are expected to own about 75% of the equity of the combined company.
The combined company will be renamed P3 Health Partners and is expected to remain listed on the Nasdaq Capital Market, P3 Health said.
P3 Health said J.P. Morgan Securities LLC acted as its exclusive financial advisor, while Cowen and William Blair served as financial advisors to Foresight.
Source: Reuters
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