UpHealth Holdings, Inc. and Cloudbreak Health, LLC are merging to create a digital health powerhouse. GigCapital2 Inc. (NYSE: GIX), a special purpose acquisition corporation (SPAC), is the buyer behind the acquisition and will be combining the two companies. UpHealth is one of the largest national and international digital healthcare providers, and Cloudbreak Health is a leading telemedicine and video medical interpretation solutions provider. Cloudbreak offers telehealth solutions covering telepsychiatry, telestroke, tele-quarantine and remote patient monitoring. The combined company will have a combined pro forma enterprise value of $1.35 billion.
GigCapital2 will merge with UpHealth and Cloudbreak to create an integrated global platform serving four digital health markets: integrated care management, global telehealth, digital pharmacy and behavioral health. It will be named UpHealth, Inc. and will be listed on the NYSE as UPH. In 2021, UpHealth is expected to generate over $190 million in revenue and $24 million in EBITDA; 69% of the 2021 incremental revenue growth is already contracted.
UpHealth has agreements with health providers, insurers and payers in all 50 states in the U.S. as well as nine international markets, leaving them in a prime position to compete in the growing telehealth market, which has seen a burst of M&A activity in response to the COVID-19 pandemic, according to search results in our HealthCare Deal Database. Teladoc Health, Inc.‘s (NYSE: TDOC) $18.5 billion acquisition of Livongo Health, Inc. (NASDAQ: LVGO) in August created a virtual care giant. The UpHealth deal is not the first eHealth deal announced through a SPAC either. In late July, Specialists On Call, Inc. went public through a reverse merger with Healthcare Merger Corp. (NASDAQ: HCCO) in a deal valued at $720 million, and Hims & Hers used Oaktree Acquisition Corp (NYSE: OAC) to go public in a $1.33 billion deal.
