Healthcare Merger Corp. (“HCMC”) and SOC Telemed (“SOC”), the largest national provider of acute care telemedicine, today announced that Bon Secours Mercy Health (“BSMH”) has committed to make a private investment (“PIPE”) that will close concurrently with the proposed business combination (the “Business Combination”) among HCMC, Sabre Merger Sub I, Inc., Sabre Merger Sub II, LLC, and SOC.
Hai Tran, chief financial officer and chief operating officer of SOC, commented, “We are thrilled with this strategic investment, and we appreciate the confidence that Bon Secours Mercy Health has placed in us. We value this relationship and look forward to continuing to collaborate for years to come.”
“Bon Secours Mercy Health is committed to the continual improvement of our clinical operations to ensure we provide the best care for our patients and residents,” said Rebecca Lenz, chief care delivery officer, Bon Secours Mercy Health. “This strategic investment supports our health system’s work in reimagining our care delivery model focused around providing high value, quality care of which telemedicine is an integral part.”
The private investment by BSMH will be on the same terms as the previously announced commitments by certain institutional investors for $165 million in common stock of the combined company. Proceeds from the PIPE will be used to partially fund the cash consideration to be paid to SOC stockholders at the closing of the Business Combination and for general working capital purposes following the closing.
The special meeting of HCMC’s stockholders to approve the Business Combination will be held virtually on Friday, October 30, 2020, at 9 a.m. Eastern Time. The consummation of the Business Combination is expected to follow shortly thereafter, subject to final stockholder approval and satisfaction of other customary conditions.
About SOC Telemed
SOC Telemed (SOC) is the largest national provider of telemedicine technology and solutions to hospitals, health systems, post-acute providers, physician networks, and value-based care organizations. Built on proven and scalable infrastructure as an enterprise-wide solution, SOC’s technology platform, Telemed IQ, rapidly deploys and seamlessly optimizes telemedicine programs across the continuum of care. SOC provides a supportive and dedicated partner presence, virtually delivering patient care through teleNeurology, telePsychiatry and teleICU, enabling healthcare organizations to build sustainable telemedicine programs in any clinical specialty. SOC enables organizations to enrich their care models and touch more lives by supplying healthcare teams with industry-leading solutions that drive improved clinical care, patient outcomes, and organizational health. The company was the first provider of acute clinical telemedicine services to earn The Joint Commission’s Gold Seal of Approval and has maintained that accreditation every year since inception. For more information, visit www.soctelemed.com.
About Healthcare Merger Corp.
HCMC is a public investment vehicle formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. HCMC’s securities are traded on the NASDAQ under ticker symbols HCCO, HCCOU, and HCCOW. HCMC raised $250 million of cash proceeds in an initial public offering in December 2019. HCMC is led by Chief Executive Officer Steve Shulman, President Charlie Ditkoff and Chief Financial Officer Dennis M. Conroy and is principally sponsored by Shulman Ventures LLC and MTS Health Partners, LP.
About Bon Secours Mercy Health
Bon Secours Mercy Health is one of the 20 largest health systems in the United States and the fifth-largest Catholic health system in the country. The ministry’s quality, compassionate care is provided by more than 60,000 associates serving communities in Florida, Kentucky, Maryland, New York, Ohio, South Carolina and Virginia, as well as throughout Ireland. Bon Secours Mercy Health provided care for patients more than 11 million times in 2019 through its network of more than 1,000 care sites, which includes 50 hospitals, as well as home health agencies, hospice, skilled nursing and assisted living facilities. Consistent with its commitment to serve each patient with dignity, Bon Secours Mercy Health provides more than $2 million per day in community benefit. The Mission of Bon Secours Mercy Health is to extend the compassionate ministry of Jesus by improving the health and well-being of its communities and bring good help to those in need, especially people who are poor, dying and underserved. For more information, visit https://bsmhealth.org/.