SOC Telemed, public investment firm merge to form $720M company: 7 details

SOC Telemed accepted combine with Health care Merger Corp., a public investment firm that raised $250 million in an IPO last December, on July 29.

7 things to know:

1. The combined business will operate as SOC Telemed and be noted on the Nasdaq Stock Market with the preliminary value of around $720 million.

2. SOC Telemed focuses on virtual care options mostly used for intense care inside healthcare facilities. The company serves 847 facilities consisting of 543 intense care hospitals in 47 states. Nineteen of the biggest 25 health systems in the U.S. use its innovation.

3. When the transaction is complete, interim CEO of SOC Telemed Paul Ricci will step down and John Kalix, president of the company, will end up being CEO. CEO and director of HCMC Steve Shulman will become chairman of the SOC Telemed board.

4. The bulk equity holder of SOC, Warburg Pincus, will remain the biggest investor of the new entity. Institutional financiers have a personal investment of $165 in typical stock of the combined business that will close with the business mix; HCMC also has around $250 million in a trust account.

5. Existing SOC investors will own 40 percent of the combined company and HCMC shareholders will own 32 percent. The remainder of the company will be held by PIPE investors and HCMC will own 7 percent of the released and exceptional shares of SOC common stock after closing.

6. The mix will likely close in the 4th quarter of 2020.

7. Credit Suisse was a monetary consultant to SOC and Orrick Herrington & & Sutcliffe were legal counsel. MST Health partners was monetary advisor to HCMC and Weil, Gotshal & & Manges and Ellenoff Grossman & & Schole were legal counsel.

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SOC Telemed focuses on virtual care options mostly used for acute care inside health centers. When the transaction is complete, interim CEO of SOC Telemed Paul Ricci will step down and John Kalix, president of the company, will end up being CEO. CEO and director of HCMC Steve Shulman will become chairman of the SOC Telemed board.

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The rest of the company will be held by PIPE financiers and HCMC will own 7 percent of the provided and outstanding shares of SOC common stock after closing.