Another week, another SPAC deal. Ambulnz, Inc., dba DocGo, has announced it is merging with Motion Acquisition Corp. (NASDAQ: MOTN), a special purpose acquisition company to create a publicly traded entity. DocGo, based in New York City, provides last-mile telehealth and integrated medical mobility services. Its medical mobility services offer on-demand service response and real-time vehicle location, as well as accurate estimated arrival times. The company serves 23 states in the U.S. and has operations in the U.K. By going public, DocGo hopes to continue growing its geographic footprint.
The combined company has a pro forma equity value of approximately $1.1 billion and will have approximately $225 million of cash on the company’s balance sheet, including a $125 million fully committed common stock PIPE led by Light Street Capital with participation by Moore Strategic Ventures, an existing stockholder of DocGo.
Ambulnz will be renamed DocGo, Inc. Its TeleHealth Plus platform is staffed with more than 1,700 paramedics and EMTs. Services include testing, vaccinations, bloodwork, IV hydration, wound care, mobile imaging and EKGs. Upon closing, DocGo is expected to be listed on Nasdaq under the new ticker symbol DCGO.
Stan Vashovsky, the CEO and co-founder of DocGo, will continue to lead the combined company. Motion’s CEO and director, Michael Burdiek, will join the board of directors upon completion of the merger.
DocGo is another company riding the wave of SPAC deals that has overtaken the healthcare industry (and the M&A market in other industries as well). Back in January, Talkspace, a tele-behavioral healthcare company, announced it is going public after it merges with Hudson Executive Investment Corp. That deal was valued at $1.4 billion.
In November, two other telehealth companies went public in a similar deal. Together, UpHealth Holdings, Inc., one of the largest national and international digital healthcare providers, and Cloudbreak Health, LLC, a leading telemedicine and video medical interpretation solutions provider, merged with GigCapital2 Inc. (NYSE: GIX), another SPAC. The combined company will have a pro forma enterprise value of $1.35 billion.
Once these deals close, and the companies start their ventures on the public market, it’ll be interesting to see how well their values hold up, and how much activity we’ll see from them in the M&A market. At the rate we’re seeing SPAC deal announcements, it might be too many to keep track of, but only time well.
