MultiPlan to go public in $11B SPAC deal

Healthcare services provider MultiPlan has agreed to go public through a reverse merger with Churchill Capital Corp. III, a special-purpose acquisition company that went public earlier this year, the latest sign of growing interest in SPACs as an alternative route to the public market in 2020.

MultiPlan, which has been owned by Hellman & Friedman since 2016, will have an initial enterprise value of about $11 billion when it begins trading on the NYSE upon the deal’s completion. Churchill Capital will invest up to $1.1 billion that it raised in a February IPO, and other investors will contribute a further $2.6 billion. Hellman & Friedman will remain MultiPlan’s largest shareholder.

Mergers with SPACs have traditionally been infrequent for private portfolio companies. But due in part to tumult on the public markets caused by the coronavirus crisis, the popularity of such deals has been on the uptick this year.

Source: Pitchbook

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