Digital health company Sharecare to go public via $3.9bn merger with Falcon Capital

Sharecare SPAC merger : US-based digital health company Sharecare has agreed to merge with Falcon Capital Acquisition Corp., a special purpose acquisition company (SPAC), in a deal that values the combined company at $3.9 billion.

Following the completion of the deal, the new firm will operate as Sharecare with a listing on NASDAQ under the ticker symbol SHCR.

The publicly-listed digital health company will have growth capital of nearly $400 million on the balance sheet to drive sustained growth, expand its sales force, new digital offerings, and mergers and acquisitions, which includes the closing of the recently announced doc.ai acquisition.

Founded in 2010, Sharecare enables users to consolidate and manage various components of their health in a single place. The digital health company offers messaging, management, motivation, and measurement tools.

Sharecare SPAC merger – Digital health company Sharecare to go public via $3.9bn merger with Falcon Capital. Image courtesy of PRNewsfoto/Sharecare.

Commenting on Sharecare SPAC merger, Jeff Arnold – founder, chairman, and CEO of Sharecare said: “We started Sharecare to leverage innovations in consumer technology – specifically the smartphone – to create a frictionless experience that engages people across the dynamic continuum of their healthcare needs.

“By integrating fragmented point solutions and bringing together stakeholders across the healthcare ecosystem into one connected virtual care platform, we believe that Sharecare is uniquely positioned to transform the way people access, providers deliver, and employers and health plans administer high quality, cost efficient healthcare. Strategic partners, Anthem and Digital Alpha, will enable continued innovation in delivering high-impact solutions at scale.”

Investors led by Koch Strategic Platforms, Baron Capital Group, Digital Alpha, Eldridge, and Woodline Partners have committed $425 million in a private investment in public equity (PIPE).

Falcon Capital Acquisition, which is led by Alan Mnuchin, is anticipated to hold a stake of around 20% of the new company, inclusive of the PIPE investors.

Alan Mnuchin, commenting on Sharecare SPAC merger,  said: “Jeff is a rare visionary who knows how to execute – multiple times over – and, at Sharecare, he and his exceptional team have continued to evolve and grow the business over the last decade, emerging as what we believe is a category of one.

“With its ability to harness the power of data and address fragmentation, Sharecare has the potential to redefine not only the marketplace but also people’s relationship with their own health and the stakeholders there to support them.”

Sharecare SPAC merger is expected to be wrapped up in Q2 2021, subject to Falcon Capital Acquisition’s shareholders, and the meeting of other customary closing conditions.