Cano Health, LLC has been an active buyer in the healthcare space for the past few years, reporting a couple of deals in 2020 alone. Now the primary care operator is going public in a new reverse merger with Jaws Acquisition Corp. (NYSE: JWS), a special purpose acquisition company. The deal is valued at $4.4 billion. Cano Health is expected to generate $1.45 billion in revenues in 2021.
The company operates primary care centers and supports affiliated medical practices in Florida, Texas, Nevada and Puerto Rico that specialize in value-based care for seniors. As part of its care coordination strategy, Cano Health provides high-touch population health management programs such as wellness activities, pharmacy services, home visits, telehealth, transition of care, and high-risk and complex care management.
The deal includes a private placement (PIPE) that will be led by a $50 million investment from Barry Sternlicht, Chairman of Jaws, as well as commitments from funds affiliated with Fidelity Management & Research Company, and funds and accounts managed by BlackRock, Third Point and Maverick Capital. The combined company will operate as Cano Health and will be listed on the NYSE under the new ticker symbol CANO. Under the terms of the agreement, Cano Health shareholders will own approximately 65% of the merged company, Jaws Acquisition Corp. shareholders approximately 15%, PIPE investors approximately 17% and Jaws’ sponsor approximately 4%.
Cano Health was formed when it merged with Comfort Health in January 2017, backed by InTandem Capital Partners (formerly known as InTandem Health), according to search results in our HealthCare Deals Database. Since then, the pair have announced seven deals together, building up Cano Health’s network across various sectors, from dental care (Dental Excellence Partners, LLC in May 2018) to multiple deals for primary care clinics and providers in 2018, 2019 and this year. In January 2020, it acquired Primary Care Physicians of Hollywood, which provides a variety of healthcare services to seniors in South Florida.
Then, this past June, Cano Health added Healthy Partners, which provides support to physicians to help them coordinate care for seniors under Medicare Advantage and Value-Based health care plans. This merger gave Cano Health a network of more than 90,000 patients in 61 medical centers, and through more than 400 medical provider affiliates across Florida.
