Global digital health company goes public in $3.9 billion SPAC merger
Sharecare, Inc. (“Sharecare”), the digital health company that helps people manage all their health in one place, announced that it has completed its business combination with Falcon Capital Acquisition Corp. (“Falcon”) (NASDAQ: FCAC), a special purpose acquisition company. The transaction was approved by Falcon’s shareholders on June 29, 2021, during a Special Meeting in which 97% of the votes cast were in favor of merger. Since July 2, 2021, Sharecare’s shares of Class A common stock will trade on the NASDAQ under the symbol “SHCR.”
“Sharecare is the leader in digital health engagement and the only platform empowering people to navigate, activate, and connect with their doctor, insurance company, and employer benefits all in one app, unifying the disparate elements of each person’s well-being journey,” said Jeff Arnold, founder, chairman, and chief executive officer of Sharecare. “As a profitable, high-growth company with zero debt on our balance sheet, we intend to use the proceeds from this transaction to fund continued growth through product development, expansion of our commercialization capabilities, and M&A. We look forward to this next phase as a public Company and are laser-focused on simplifying the overall health experience, improving outcomes, and reducing cost on behalf of individuals, communities, and organizations everywhere.”
As a result of the business combination, Sharecare will receive gross proceeds of over $571 million, prior to transaction expenses, including investments from funds managed by Koch Strategic Platforms, Baron Capital Group, Eldridge, Woodline Partners LP, and strategic partner, Digital Alpha which will be used to fuel continued growth, engagement, and innovation. Separately, Anthem, Inc. made a direct investment in Sharecare, and the Companies are partnering to build affordable, high-quality, whole-health advocacy solutions. Arnold and Sharecare’s management team will continue to lead the combined company.
“We believe passionately in Sharecare’s ability to drive meaningful transformation across the healthcare ecosystem and innovate at scale,” said Alan Mnuchin, chairman and chief executive officer of Falcon. “We had very specific selection criteria in mind for our ideal partner: an organization that developed an industry-leading solution, demonstrated the readiness of a public company, and truly represented a differentiated ‘category of one.’ Sharecare is that organization; and with Jeff and the incredible management team, we are confident in the Company’s vision, diverse business model, and, most importantly, its ability to impact positive change in millions of people’s lives.”
“We think of Koch as a laboratory—a place for innovation and experimentation—which allows us to bring value beyond just investing when it’s appropriate, and we are excited about the opportunity to contribute to Sharecare’s success as it enters the public market,” said David Park, president of Koch Strategic Platforms. “As an innovative company with great long-term fundamentals sitting at the intersection of media, technology, and healthcare, Sharecare is well positioned to drive much needed disruption across the digital health continuum.”
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC acted as financial advisors and King & Spalding LLP acted as legal counsel to Sharecare. BTIG, LLC and Canaccord Genuity LLC acted as capital markets advisors to Sharecare. Goldman Sachs Group acted as financial advisor and White & Case LLP acted as legal counsel to Falcon Capital Acquisition Corp. Goldman Sachs and J.P. Morgan Securities LLC acted as joint placement agents in connection with the PIPE offering.