Clover Health Investments Announces IPO by Merging with Special Purpose Acquisition Company Social Capital Hedosophia Holdings Corp III (IPOB) – Get Report
The deal would generate $ 1.2 billion in gross proceeds, including a PIPE – private investment in public stocks – of $ 400 million from a number of investors and up to $ 828 million in cash held in the Social Capital trust account
Venture capitalist Chamath Palihapitiya, founder and managing director of Social Capital, will invest $ 100 million from PIPE and will be senior advisor to the management of the new company
Clover will receive up to $ 728 million in transaction proceeds Up to $ 500 million in cash proceeds will be allocated to current Clover shareholders Senior executives at Clover will inject all of their equity into the new company
« We’re on a mission to make healthcare affordable Our technology helps physicians achieve better outcomes and reduce member out-of-pocket expenses, » said Andrew Toy, president and co-founder of Clover
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Clover’s software platform delivers personalized data and information to primary care physicians at the point of care
The platform aggregates millions of health data points – including claims, medical records, and diagnostics – and uses machine learning to synthesize the data with « member-specific information, » said the company
Clover serves over 57,000 members across Arizona, Georgia, Mississippi, New Jersey, Pennsylvania, South Carolina, Tennessee and Texas The company claims it is the Medicare insurer Fastest growing advantage in the country among insurers with over 50,000 members
In turn, Medicare Advantage is one of the fastest growing markets in the US healthcare system worth $ 270 billion today and an estimated value of $ 590 billion. dollars by 2025, the company said
The Boards of Directors of Social Capital, Palo Alto, Calif., and Clover approved the deal Subject to conditions such as regulatory approvals and a vote of equity holders, the companies hope to close the deal at first trimester
Clover Health, Specialty Acquisition Company, Chamath Palihapitiya, Social Capital, Medicare
News from around the world – US – Clover Health to go public via Social Capital SPAC
