Sharecare to go public through SPAC merger, Anthem investment
A digital health company co-founded by Dr. Mehmet Oz said Friday it will go public through a merger with a blank-check company headed by the brother of former U.S. Treasury Secretary Steve Mnuchin.
Atlanta-based Sharecare also received an expanded investment from Anthem, a strategic partner of the digital health startup. An Anthem spokesman declined to comment on the size of the investment.
Sharecare will merge with Falcon Capital Acquisition Corp., a special purpose acquisition company led by CEO Alan Mnuchin that went public in September 2020 for $345 million. The new company will be known as Sharecare Inc. and estimates it will be worth $3.9 billion, with $400 million in capital that intends to invest in growing its sales force, product offerings and M&A, including the completion of its doc.ai acquisition. Once the merger closes, Sharecare will be listed on the Nasdaq as SHCR.
Rajeev Ronanki, chief digital officer at Anthem and a member of Sharecare’s board of directors, said the partnership and investment will build out Anthem’s predictive and personalized digital offerings.
“Through this relationship, we will leverage human-centered design and digital technologies, including artificial intelligence, that increase consumer engagement, deliver more affordable healthcare, and achieve better health outcomes through services such as next-generation personalized health concierge and advocacy services,” Ronanki said in a statement.
The acquisition is expected to be funded through a $345 million contribution from Falcon, $425 million from investors Koch Strategic Platforms, Baron Capital Group, Eldridge and Woodline Partners and the Anthem investment. Through the deal, Falcon Capital will own 20% of the new company. The acquisition is expected to close in the second quarter.
Founded in 2010 by Oz and Jeff Arnold, the Sharecare platform centralizes users’ healthcare messages, management and measurement tools. The company said its business largely operates under a recurring revenue model that is expected to drive 20% year-over-year growth.
Anthem and Sharecare’s partnership stretches back to its undisclosed acquisition of doc.ai, an AI-powered personal assistant. Anthem had partnered with doc.ai to license its COVID-19 evaluation tool and mental health chatbot. Blue Cross and Blue Shield of Arizona has also invested in Sharecare, and rewarded enrollees who used the app to track their steps.
Arnold, Sharecare’s CEO, said Anthem’s expanded investment in the company will help it scale.
“By integrating fragmented point solutions and bringing together stakeholders across the healthcare ecosystem into one connected virtual care platform, we believe that Sharecare is uniquely positioned to transform the way people access, providers deliver and employers and health plans administer high quality, cost-efficient healthcare,” Arnold said in a statement.