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Summary
- Alan Mnuchin-backed blank check company Falcon Capital is reportedly in talks for a reverse-merger with online health platform Sharecare Inc.
- While neither of the two companies has made any official statement yet, sources say the merger deal would take the combined entity’s value to US$ 4 billion.
- Before going public on the Nasdaq stock exchange, Falcon Capital raised about US$ 345 million in gross proceeds from its initial public offering (IPO).
Rumor has it that investment banker Alan Mnuchin-backed blank check company Falcon Capital Acquisition Corporation (NASDAQ:FCAC, FCAC:US) is in talks for a reverse-merger with health and wellness platform Sharecare Inc. While neither of the two companies has made any official statement yet, sources quoted by Reuters say the merger deal would take the combined entity’s value to US$ 4 billion.
The deal is expected to be made public by the end of this week, although people close to the matter clarified that negotiations between the two companies could still fall through.
What We Know About Falcon Capital Acquisition & Sharecare?
With the matter still being “confidential”, there is limited information available about the merger talks going on between special purposed acquisition company (SPAC) Falcon Capital Acquisition and Sharecare. But sources say that the proposed deal requires Sharecare to acquire Palo Alto-based health care startup Doc.ai before the merger with Falcon Capital.
Before going public on the Nasdaq stock exchange, Falcon Capital raised about US$ 345 million in gross proceeds from its initial public offering (IPO).
©Kalkine Group 2021
The SPAC’s board of directors reportedly includes big names such as film producer Jeff Sagansky, ex-SoftBank Vision Fund managing partner Michael Ronen, capital markets advisory Metropolitan Capital Advisors founder Karen Finerman, etc.
Since its stock market debut in November last year, stocks of Falcon Capital have surged by over eight per cent in the last two months.
Sharecare was founded by American entrepreneur Jeff Arnold in 2012, about 14 years after he came up with the online medical information provider, WebMD. Sharecare, a digital health startup, focuses on providing its customers with health care and lifestyle-oriented advice via its mobile app.
The Georgia-based company has an employee base of 2,400 people, and has over 10,000 hospital and practice partners, as per its website.
Many companies have recently taken the alternate way of going public via a SPAC, which is a shell company that exists only to raise funds in an IPO to acquire a private firm, instead of the traditional IPO route. Most recently, there have been reports about electric vehicle (EV) firms Lucid Motors Inc and Proterra Inc going public via SPAC mergers.
