SOC Telemed to go private via acquisition by investment firm

Patient Square Capital will acquire SOC Telemed, the acute care telehealth company announced Thursday.

SOC Telemed—formerly known as Specialists On Call—went public in 2020 by mergning with a special purpose acquisition company in 2020.

SOC Telemed will again be privately held once Patient Square Capital completes its purchase. The vendor offers technology and services for such specialty care as neurology, critical care and pulmonology to hospitals, physician networks and other healthcare organizations. SOC Telemed expects the deal to close in the second quarter.

Shareholders will receive $3 in cash per share of common stock, representing a premium of 366.1% over SOC Telemed’s closing share price on Wednesday and 93.1% over the company’s 60-day volume-weighted average price through Wednesday, according to a news release. Shares closed at $2.85 Thursday, up from $0.64 on Wednesday.

“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,” Dr. Chris Gallagher, the company’s CEO said in a news release.

Gallagher will retain his position, which he assumed in September after SOC Telemed purchased multi-specialty acute-care telehealth company Access Physicians earlier last year. Gallagher co-founded Access Physicians and served as its CEO. Patient Square Capital founding partner Karr Narula sat on Access Physicians’s board.

SOC Telemed’s board of directors recommends that shareholders accept the deal.

“The board unanimously determined that the all-cash offer unlocks maximum value to stockholders, and that the experience and resources of Patient Square Capital would best position the company for growth in the years to come,” board Chair Steve Shulman said in a news release.

SOC Telemed recorded $26.7 million in revenue in the third quarter, up 76.3%, and a $10.6 million net loss, compared to a $9.7 million net loss in the year-ago quarter. The company plans to release its annual earnings results by March 31. In November, SOC Telemed projected that full-year revenue will be between $91.5 million to $93.5 million.

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