Medicare Benefit startup Clover Well being is slated to change into public by a merger with Social Capital Hedosophia Holdings Corp. III, a particular function acquisition firm, Clover mentioned Tuesday.
The deal values Clover at $three.7 billion. Clover’s administration crew, together with CEO Vivek Garipalli and President Andrew Toy, will proceed to guide Clover following the transaction, which is predicted to shut within the first quarter of 2021.
Chamath Palihapitiya, founder and CEO of Social Capital Hedosophia, will act as a senior advisor to the Clover’s administration crew. Social Capital Hedosophia is a partnership between funding companies Social Capital and Hedosophia.
The deal is predicted to ship as much as $1.2 billion of gross proceeds, together with as much as $828 million of money. Clover will obtain as much as $728 million of the transaction proceeds, and as much as $500 million of money proceeds will probably be allotted to present Clover shareholders, in response to a information announcement.
Clover, which was based in 2013, serves greater than 57,000 members in 34 counties throughout 7 states. It plans to develop into an extra 74 counties and an eighth state subsequent 12 months. Final week, Clover introduced a partnership with Walmart to promote co-branded Medicare Benefit plans in eight Georgia counties.
Medicare Benefit is the fastest-growing nook of the medical insurance trade. The enterprise has grown quickly as child boomers age into Medicare at quick clip and more and more select the privatized model of authentic Medicare. Insurers have clamored to realize a foothold within the profitable enterprise.