MultiPlan, on Sunday, reached a merger deal with special purpose acquisition company (SPAC) Churchill Capital III, which values the company at $11 billion.
The merger will allow the healthcare solutions provider to go public without an initial public offering. MultiPlan said its shares would list at the New York Stock Exchange.
The deal with Churchill Capital will bring the New York-based company $3.7 billion of new equity or equity-linked capital, which will help it “to substantially reduce its debt and fund new value-added services,” the company said.
MultiPlan is currently owned by private equity firm Hellman & Friedman. Churchill Capital, the firm it is merging with, was founded by former Citigroup banker Michael Klein and went public in February.
“This transaction allows us to create payer value beyond the tech-enabled cost management and payment integrity services we offer today,” the company’s chief executive officer Mark Tabak said in a statement.
“As a public company, MultiPlan will have greater strategic and financial flexibility, making it better equipped to expand organically, through adjacent acquisitions and by investing in new technologies.”
[MultiPlan provides dental and medical payers negotiation, claim pricing, and payment accuracy services to customize their healthcare cost management programs.]
Earlier this year, electric vehicles maker Nikola famously went public in a similar manner. Rival company Fisker is also reportedly planning a merger with a SPAC.
Churchill Capital shares closed nearly 2% higher at $10.81 on Friday.
This story originally appeared on Benzinga.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.