Cano Health to list via $4.4 bln merger with Barry Sternlicht-backed SPAC (updated)

Ark Solutions

12/11/2020 11:25

(Adds financial details, background)
    Nov 12 (Reuters) - Healthcare provider Cano Health LLC will
be taken public through a merger with a blank-check company
backed by real estate investor Barry Sternlicht, in a deal worth
$4.4 billion deal, including debt, the companies said on
Thursday. 
    Sternlicht's special purpose acquisition company (SPAC) Jaws
Acquisition Corp  JWS.N  was listed on the New York Stock
Exchange in May.
    A SPAC is a shell company that uses IPO proceeds to buy
another company, typically within two years, in a merger that
will take the acquired company public. Investors are not
notified in advance on what company the SPAC will buy.
    SPACs have emerged as a popular IPO alternative for
companies this year, providing a path to going public with less
regulatory scrutiny.
    Online betting firm DraftKings  DKNG.O  and billionaire
investor Richard Branson's space tourism firm Virgin Galactic
Holdings Inc  SPCE.N  have picked the SPAC route this year.
    Founded in 2009, Cano Health runs a healthcare platform for
103,000 seniors, with more than 500 primary care physicians
across 14 markets in Florida, Texas, Nevada and Puerto Rico. 
    As part of the deal, Cano Health will receive an investment
of $800 million from investors including Sternlicht as well as
funds related to and managed by Fidelity Management, BlackRock,
Third Point and Maverick Capital.
    
    

 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amy
Caren Daniel)
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Outside U.S. +91 80 6182 2663 or +91 80 3796 2663 ;))