The US-based iCoreConnect has built an enterprise and healthcare workflow platform designed to enhance the workflow productivity and profitability of clients in the dental and medical industries
Cloud-based software firm iCoreConnect has agreed to merge with FG Merger (FGMC), a Nasdaq-listed special purpose acquisition corporation (SPAC), in a deal that values the former at a pro forma enterprise value of $98m.
Based in the US, iCoreConnect has built an enterprise and healthcare workflow platform designed to boost the workflow productivity and customer profitability of clients in the dental and medical industries.
The company is said to have developed 15 Software-as-a-Service (SaaS) enterprise solutions and has over 90 agreements with state or regional healthcare associations in the US.
Its SaaS and Managed SaaS (MSaaS) recurring revenue model is claimed to be supported by a diversified base of healthcare providers and blue chip and enterprise-level clientele.
The merger with FG Merger will enable iCoreConnect to be uplisted from the over-the-counter (OTC) market to the Nasdaq.
ICoreConnect CEO Robert McDermott said: “iCoreConnect is at the forefront of bringing workflow efficiencies to healthcare providers. Our solutions of 15 enterprise SaaS offerings have experienced significant subscription growth over the past several years, driven by our excellent sales team and the relationships we have cultivated with state associations and blue-chip names in the healthcare industry.
“We see continued demand for our products from large healthcare providers, hospitals, dental support organisations, and large insurance companies.”
The combined company, post-merger, is expected to gain gross proceeds of up to $82.5m from the trust account of FG Merger from its initial public offering in early 2022, assuming no redemptions from its shareholders.
FG Merger chairman Larry Swets said: “We are excited to provide iCoreConnect shareholders an opportunity to have their intrinsic value recognised while providing our shareholders a unique asymmetric opportunity to contribute to the growth capital of the combined company.
“Previously, these unique solutions to growth capital were only available to a select group of PIPE investors, we think all of our shareholders should have that opportunity.”
The deal, which is subject to approval by the SPAC’s stockholders and iCoreConnect’s stockholders alongside other customary conditions, is anticipated to close in Q2 2023.