A company specializing in last mile telehealth and medical mobility services is going public in a SPAC deal announced Tuesday.
The SPAC Deal: Ambulnz is going public in a $1.1 billion deal with Motion Acquisition Corp MOTN. As part of the merger, the company will rebrand as DocGo and trade with ticker DCGO after the merger closes.
Funds from the SPAC deal are expected to be used for “rapid geographic expansion,” according to the company. Current Motion Acquisition shareholders will own 10% of the new company.
About The Future DocGo: Founded in 2015, Ambulnz has a network of over 1,700 paramedics and EMTs that provide testing, vaccination, bloodwork, IV/hydration, wound care and mobile imaging.
DocGo operates with a business-to-business model serving hospital networks, insurance providers, municipalities and large commercial enterprises.
The company has several exclusive joint ventures that provide predictable revenue. DocGo lists MLB, NFL, Carnival, Uber and GoodRx as partners in its investor presentation.
DocGo has completed over one million cumulative patient interactions.
Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021
Growth Ahead: DocGo lists a total addressable market size of $95 billion. It currently operates in the U.S. in 23 of the 29 states it is licensed in and has license applications pending in an additional 14 states. DocGo also has operations in the U.K.
The growth of telehealth is massive and has a large addressable market size. A portion of this market still requires physical follow-up, according to DocGo’s presentation. The company is seeking to partner on this required follow-up to close the telehealth circle.
Financials: DocGo had revenue of $94 million in fiscal 2020, a 95% year-over-year increase. Revenue is estimated to be $155 million in fiscal 2021 and $265 million in fiscal 2022.
The company said it expects to have positive EBITDA in fiscal 2021. DocGo has a recurring revenue base that represents around 70% of forecasted 2021 revenue.
See also: How to Invest in SPACs How to Invest in SPACs
Price Action: Shares of Motion Acquisition are up 1% to $10.01 in pre-market trading.
Related Link: Check out more on SPACs Attack, co-hosted by Chris Katje on Benzinga's YouTube channel.
(Photo: Ambulnz)
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