Ambulnz, a mobile medical services provider and patient transportation company, announced its plans yesterday to merge and go public with special purpose acquisition company Motion Acquisition Corp.
The company currently does business as DocGo and is in the process of renaming.
The deal is expected to close in the second quarter of 2021, subject to approval by the companies’ stockholders, It will value the combined company at approximately $1.1 billion, according to the announcement.
Once closed, it will deliver roughly $225 million in cash to the combined company, including $125 million from private placement (PIPE) of common stock priced at $10.00 per share.
Stan Vashovsky, the CEO and cofounder of DocGo, will continue to lead the combined company. Motion's CEO and director, Michael Burdiek, will join the board of directors upon completion of the merger.
WHY THIS MATTERS
DocGo markets itself as a last-mile telehealth provider through its Telehealth Plus offering. With this, patients can receive nonemergency medical services from their homes such as testing, vaccinations, wound care, mobile imaging and more.
It also operates medical transportation services that are tech-enabled, offering real-time vehicle location and estimated arrival times.
The company serves 23 states in the U.S. and U.K. By going public, DocGo hopes to continue growing its geographic footprint.
Along with the merger announcement, DocGo shared its financial outlook for upcoming years. Its 2020 revenue of $94 million nearly doubled its 2019 revenue of $48 million. This year, it projects continued revenue growth at $155 million, and for 2022, it hopes to reach $265 million.
THE LARGER TREND
Heal is another company that has combined telehealth and at-home medical services. It initially started as an app that helped users coordinate doctor house calls, but more recently it began offering virtual follow-up appointments, telepsychiatry services and a monthly subscription plan.
The company also began a partnership with Humana last summer to offer its services to the health plan’s members and to expand Heal’s network.
Also in the space is DispatchHealth, which scored $200 million in Series D funding this March to expand its in-home care platform to 100 markets.
The direct-to-consumer virtual care company Ro turned towards the at-home care space last December with its acquisition of Workpath, an on-demand in-home care platform. Because of the acquisition, Ro began vaccinating older people and those with disabilities in their homes through a New York State Department of Public Health program.
ON THE RECORD
"DocGo was built to bring a digital-first approach to last-mile telehealth and integrated medical mobility services that bridge the gap between physical and virtual care,” Vashovsky said in a statement.
“The unique combination of our proprietary technology platform and care logistics expertise, along with our highly trained and motivated base of dedicated field professionals, has led to increased satisfaction and improved outcomes for patients, as well as to superior service and lower cost for providers and payers.
"We are taking traditional healthcare beyond the walls of hospitals and clinics, and offering in-home healthcare services at affordable price points to the broader community.”
