The company’s AI-based platform is said to equip physicians with precision medicine insights and financial resources to succeed in the value-based delivery programmes of Medicare
Excelera DCE, an American technology-enabled care delivery platform, has agreed to merge with blank cheque company Future Health ESG in a deal that values the combined entity at around $459m.
The deal will enable Excelera to go public with an expected listing on the Nasdaq.
The combined company, after the merger, will operate as Excelera Health.
Excelera, which was launched on 1 January 2022, is engaged in streamlining the delivery of value-based care. It caters to over 22,000 senior citizens via its network of participating physicians across California and Hawaii.
The company’s artificial intelligence (AI)-based platform is said to equip physicians with precision medicine insights as well as financial resources to succeed in the value-based delivery programmes of Medicare.
Its Human Insights platform brings together proprietary machine learning algorithms and genomics and other data to focus proactively on prevention and management of chronic disease.
Excelera’s profits come through the effective management of cost in the value chain to enable doctors in providing better care while achieving considerable improvements in their bottom line.
Excelera founder Sanjay Patil said: “After more than 20 years practicing as a cardiologist, I founded Excelera to deliver a new paradigm of senior care, informed by the latest medical and data science.
“Rather than rationing access to care or avoiding high risk patients, our model actually embraces the opportunity to improve outcomes for the sickest and most vulnerable seniors.”
All the proceeds from the deal will be used by the combined company to fund growth of the AI-based platform into more geographies.
As per the terms of the deal, the seller will be issued 40 million shares at closing, and 20 million additional shares as earn-out. The latter will be payable when the combined entity earns $150m in revenue for any calendar quarter before the fifth anniversary of the closing of the deal.
The proposed merger is anticipated to deliver net proceeds of at least $105m and up to $282m. These include up to $201m of cash held in Future Health’s trust account and a fully subscribed $100m private placement (PIPE) of common stock of the combined entity.
The PIPE investors have also agreed to buy an additional $20m of Future Health’s shares on the open market before the closing of the deal.
Future Health co-founder and CEO Bradley Bostic said: “Our mission with Future Health was to identify and bring to the public markets a disruptive company that leverages modern technology and data-science to improve outcomes, reduce waste, and better personalise care.
“It is difficult to imagine a company better aligned with this mission than Excelera. What they’ve established is a truly novel and impactful approach to value-based care, and we are excited to partner with the talented Excelera team to create exceptional shareholder value while improving lives with smarter and more proactive healthcare.”
The transaction, which is subject to approval from Future Health’s stockholders and other conditions, is likely to close in the latter half of this year.