Primary care provider Cano Health will receive a nearly $1.5 billion infusion as investors push deeper into a growing form of care delivered to Medicare Advantage patients.
The privately held Miami-based company said Thursday that it will merge with a publicly traded special purpose acquisition company, Jaws Acquisition Corp., in a deal aimed at fueling value-based care.
In that approach, doctors essentially focus more on keeping patients healthy or improving their health instead of waiting to treat whatever ailment makes them seek care.
The deal will value the combined company at about $4.4 billion. It includes $690 million in cash from Jaws and an $800 million private placement of common stock in the combination.
Investors include Starwood Capitals Barry Sternlicht, who will serve on the combined companys board, and funds tied to BlackRock, Third Point and Maverick Capital.
The deal is expected to close in the first half of next year, and the combined company will operate under the name Cano Health. Its stock will trade under the new ticker symbol CANO.
Cano Health treats more than 103,000 patients through a network of primary care doctors in Florida, Texas, Nevada and Puerto Rico.
Shares of Jaws Acquisition Corp. jumped nearly 6% to $10.70 shortly after markets opened Thursday.
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