Startup Medicare Benefit insurer Clover Well being goes public.
The payer, which gives tech-enabled Medicare Benefit plans, will grow to be publicly-traded by merging with Social Capital Hedosophia Holdings Corp., a particular objective acquisition firm.
By means of the deal, Clover will likely be valued at $3.7 billion in enterprise worth.
SCH will purchase Clover by way of a mix of inventory and money financing, in line with the announcement. The deal was unanimously accredited by the board of administrators at each SCH and Clover, and is predicted to shut within the first quarter of 2021.
The merger will nonetheless be topic to approval from SCH’s shareholders and regulatory businesses.
RELATED: Clover Well being set to triple geographic footprint in wake of membership surge
Andrew Toy, president and co-founder of Clover, advised Fierce Healthcare that the corporate thought-about pursuing a conventional preliminary public providing however determined that the merger technique was the higher play.
“We expect this can be a nice pathway for us, to take this angle,” Toy mentioned.
Toy mentioned the Clover workforce sees a “break even line of sight” following the infusion of capital from the general public providing. The insurer has invested closely in rising its attain and finessing its expertise, specifically its Clover Assistant, and the extra funding would enable the corporate to considerably increase these efforts.
“It’s all about form of turbo charging and increasing our mannequin,” Toy mentioned.