SOC Telemed announced Thursday that it had entered into a definitive agreement to be acquired by Patient Square Capital, a healthcare investment firm.
The completed deal will take the acute-care telemedicine vendor private, the companies said in a press release.
“The last several years have revealed the critical ways that technology can expand access to care, improve clinician efficiency, and enable more cost-effective care delivery,” Dr. Chris Gallagher, CEO at SOC Telemed, said in a statement.
“Achieving those goals will require focus, time and meaningful investment in the years to come,” he said.
WHY IT MATTERS
According to the companies, SOC Telemed stockholders will receive $3 in cash per share of common stock – about 366.1% over the vendor’s closing price on Feb. 2.
SOC Telemed share prices climbed Thursday after news of the agreement made it to the headlines.
The board has approved the acquisition, said the companies, and recommends that stockholders do as well.
“Patient Square Capital’s acquisition of SOC Telemed, which is the culmination of a comprehensive process, represents a compelling opportunity for all stakeholders,” Steve Shulman, chair of SOC Telemed’s board of directors, said in a statement.
According to the companies, Patient Square’s partners have served on the boards of several healthcare organizations, including HCA, OB Hospitalist Group, Envision Healthcare and Covenant Physician Partners.
“Today’s announcement is a testament to the hard work of the SOC Telemed team, which worked tirelessly to achieve an optimal outcome for our stakeholders,” said Shulman.
The agreement also includes a 30-day “go-shop” period, allowing the SOC Telemed board of directors and its advisors to consider other third-party proposals.
After the completion of the transaction, expected in the second quarter of 2022, Gallagher will continue to serve as SOC Telemed’s CEO.
“We believe that as a private company, with the expertise and support of the team at Patient Square Capital, SOC Telemed will be best positioned to meet the growing needs of patients, physicians and our hospital partners,” Gallagher said in a statement.
THE LARGER TREND
The acquisition marks yet another notable healthcare deal this season, following the announcements of Oracle’s plans to buy Cerner for a whopping $28.3 billion and the deal to sell-off IBM’s Watson Health to Francisco Partners.
Other recent deal announcements include Stryker’s plans to buy Vocera Communications for $3 billion and R1 RCM’s move to snap up Cloudmed.
ON THE RECORD
“Having served on the board of Access Physicians prior to its acquisition by SOC Telemed, I had the opportunity to see first-hand the vital role that inpatient telemedicine can play in transforming clinical workflows, addressing clinician shortages, and enabling timely and high-quality patient care,” Karr Narula, founding partner of Patient Square, said in a statement.
“We look forward to partnering with Dr. Gallagher and the SOC Telemed team to invest meaningfully in the business to further accelerate growth and expand its offerings in the years to come,” Narula added.
Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.
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