The co-founder and former co-CEO of insurer Oscar Well being has recognized a supplier to take public by the particular objective acquisition firm he leads.
American Oncology Community plans to go public by a mixture with Digital Transformation Alternatives Corp., a blank-check firm shaped in early 2021 by CEO Kevin Nazemi and different executives within the healthcare and tech industries.
The oncology supplier would be the second of its sort to be publicly traded on NASDAQ because of combining with a SPAC. The Oncology Institute was the first most cancers specialist to hit the inventory market in November 2021 following its merger with blank-check firm DFP Healthcare Acquisitions Corp.
The American Oncology Community deal, anticipated to shut within the first half of 2023, values the mixed firm at $500 million. American Oncology Community’s senior management crew will proceed to information the corporate following the finished transaction.
“We’re excited to make use of the expansion capital and partnership with the DTOC crew to proceed investing in expertise and providers that may help our doctor companions and improve the worth proposition of AON,” American Oncology Community CEO Todd Schonherz stated in a information launch.
SPAC mergers had been a well-liked means for personal corporations to go public as a result of an organization solely needed to persuade the shell firm of its value, not a broader viewers of potential buyers. Offers soared in 2020 earlier than slowing this yr.
Based in 2018, Florida-based American Oncology Community represents about 100 physicians and 90 superior practitioners throughout 18 states. The corporate’s revenues elevated from $320 million in 2019 to $944 million in 2021, in response to a regulatory submitting.
If the deal falls by as a result of American Oncology Community enters right into a definitive settlement with one other entity, the corporate should pay Digital Transformation Alternatives a $18 million termination price.
The businesses didn’t instantly reply to interview requests.
“We launched DTOC with the dedication to our buyers to companion with a excessive development platform that was leveraging expertise to drive enchancment throughout the healthcare business, and we couldn’t be extra excited to satisfy that dedication as we speak by our partnership with AON,” Nazemi stated in a information launch.