Credit Suisse https://www.credit-suisse.com reports that SOC Telemed https://www.soctelemed.com, the largest national provider of acute care telemedicine, has entered into a definitive agreement to be acquired by (Patient Square) https://patientsquarecapital.com, a dedicated healthcare investment firm.
Under the terms of the agreement, Patient Square will pay SOC Telemed stockholders $3/share in cash, which represents a 366% premium over the 2/2 close and a 93% premium to SOC Telemed’s 60 day VWA through 2/2. The purchase price implies an Enterprise Value of ~$350 min, ~3.ox and ~2.5x, which Credit Suisse’s analysts estimate are 2022 and 2023 revenues estimates.
The transaction is expected to close in 2022. Following the completion of the transaction, SOC Telemed will continue to be led by Dr. Chris Gallagher, the company’s CEO, who assumed the role in September 2021.
SOC Telemed was one of the analysts’ pick for one of the five companies flagged as “Potential M&A/Special Sits Candidates in the 2022 Outlook.” The analysts call was predicated on a view that SOC Telemed could be a highly attractive asset for organizations willing to take a LT view on the further acceleration of telehealth adoption among hospitals and health systems.
The agreement includes a 30 day “go shop” period, which allows the SOC Telemed BOD and advisors to actively initiative, solicit, and consider alternative acquisition proposals from third parties.
Publicity traded telehealth companies might have interest in SOC Telemed. However, the key question is if any of these strategic buyers will be willing to put in the resources to improve operational requirements that would be required if one were to absorb SOC Telemed.
Patient Square Capital is a healthcare investment firm that participates broadly across various healthcare industry subsectors, including biopharma, medical device & supplies, healthcare providers, and tech-enabled services.
For more information on the SOC Telemed agreement with Patient Square Capital, ask questions, provide feedback, or news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.