Last week Sharecare, Inc. announced it was going public in a reverse merger with Falcon Capital Acquisition Corp. (NASDAQ: FCAC), a special purpose acquisition company (SPAC). Sharecare provides an online health and wellness engagement platform that gives consumers a personal results-oriented experience by connecting them to health resources and programs. Falcon Capital is in an investment partnership with Eagle Equity Partners.
The deal is valued at $3.9 billion and is expected to be funded through a combination of Falcon’s $345 million of cash in trust supported by a $425 million PIPE at $10.00 per share. Sharecare will have approximately $400 million on its balance sheet to fund growth initiatives following the close of the deal. Anthem, Inc. (NYSE: ANTM), the health insurance giant, will make a direct investment in Sharecare and partner to build affordable, high-quality, whole-health advocacy solutions. The new company will become Sharecare, Inc. and be listed on NASDAQ under the ticker symbol SHCR. In 2021, Sharecare is expected to generate $410.5 million in revenue.
The PIPE investment was led by Koch Strategic Platforms, Baron Capital Group, Eldridge, Woodline Partners LP, and Digital Alpha.
Sharecare’s merger with Falcon Capital is the second time this year a digital health company has gone public through a SPAC. In January, Talkspace, a tele-behavioral healthcare company, announced it was merging with Hudson Executive Investment Corp. (NASDAQ: HEC) in a $1.4 billion deal.
