The digital health platform Sharecare, Inc. has moved into the Home Health & Hospice sector. Last week, the company announced a definitive agreement to acquire CareLinx Inc for $65 million, or $54.6 million in cash and $10.4 million in Sharecare common stock.
CareLinx is a technology platform of tech-enabled care providers, both clinical and non-medical, which can be dispatched on-demand to any location. The company has more than 450,000 caregivers in its network, and it couples its home care services with mobile technology to facilitate rich data capture, population health analytics, and the enabling of real-time care coordination with remote clinical teams.
For the year ended December 31, 2020, CareLinx reported revenue of approximately $5 million. CareLinx expects to report revenue of approximately $20 million for the year ended December 31, 2021, and grow revenue organically by at least 75% in 2022.
King & Spalding LLP served as legal counsel to Sharecare and K&L Gates LLP served as legal counsel to CareLinx. Oppenheimer & Co. Inc. served as financial advisor to CareLinx.
For Sharecare, this expands the company into the home care market, which has experienced a boom in demand thanks to demographic tailwinds. This is actually Sharecare’s first deal since it went public in a de-SPAC transaction with Falcon Capital Acquisition Corp. Sharecare was valued at $3.9 billion in that deal, and the company hit the ground running with approximately $400 million on its balance sheet to fund growth initiatives. And it looks like we’re already seeing the company put that cash to good use.
