Patient Square Capital will acquire SOC Telemed, the acute care telehealth company announced Thursday.
SOC Telemed—formerly known as Specialists On Call—went public in 2020 by merging with an ad hoc acquisition company in 2020.
SOC Telemed will once again be a private company once Patient Square Capital completes its purchase. The provider offers technologies and services for specialty care such as neurology, critical care and pulmonology to hospitals, physician networks and other healthcare organizations. SOC Telemed expects the transaction to close in the second quarter.
Shareholders will receive $3 in cash per common share, representing a premium of 366.1% to SOC Telemed’s closing share price on Wednesday and 93.1% to the weighted average 60-day volume through Wednesday, according to a Press release. Shares closed at $2.85 on Thursday, down from $0.64 on Wednesday.
“We believe that as a private company, with the expertise and support of the Patient Square Capital team, SOC Telemed will be best placed to meet the growing needs of patients, physicians and our hospital partners” , said Dr. Chris Gallagher, director of the company. the CEO said in a press release.
Gallagher will retain his post, which he held in September after SOC Telemed purchased Access Physicians, a multi-specialty acute care telehealth company, earlier last year. Gallagher co-founded Access Physicians and served as its CEO. Karr Narula, founding partner of Patient Square Capital, served on the Board of Access Physicians.
The board of directors of SOC Telemed recommends to the shareholders to accept the operation.
“The Board of Directors unanimously determined that the all-cash offer unlocks maximum shareholder value, and that Patient Square Capital’s experience and resources would best position the company for growth in the years to come,” Board Chairman Steve Shulman said in a press release. .
SOC Telemed reported third quarter revenue of $26.7 million, up 76.3%, and a net loss of $10.6 million, compared to a net loss of $9.7 million. dollars in the quarter of the previous year. The company plans to publish its annual results by March 31. In November, SOC Telemed projected this full-year revenue will be between $91.5 million and $93.5 million.