Private Equity: Warburg Pincus Gives Green Light to Deal for SOC Telemed

July 31, 2020 | Latest News, News, Private Equity
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Telemedicine Poised for Growth. 

Leading acute care telemedicine provider SOC Telemed announced that it will partner with private equity firms Warburg Pincus and Shulman Ventures amid a fast-growing climate for the telemedicine space.  Following this agreement, CEO Paul Ricci — also advisor of Warburg Pincus — will step down.  SOC’s management team will consist of President John Kalix and COO Hai Tran.  Steve Shulman of Shulman Ventures will become chairman of the SOC Telemed board of directors.  Warburg Pincus will remain as SOC’s largest shareholder. 

Paul Ricci recently expressed, “This business combination strengthens SOC Telemed and will allow it to further penetrate the broad and fast-growing acute telemedicine market…Telemedicine is at a pivotal moment as the country continues to navigate the COVID-19 crisis. As hospital leaders struggle with the problems of acute capacity management, physician scarcity and cost optimization, it has become clear that virtual care will continue to be a critical component of the healthcare industry’s ability to deliver better care to patients.”  

Detailing the Deal

HCMC is a Nasdaq company.  It aims to compete with other healthcare companies.  Its relationship with MTS Health Partners leads in acquiring and managing businesses in the healthcare industry.  According to Charlie Dtikoff of HCMC, “SOC fits perfectly with HCMC’s differentiated expertise in the healthcare industry and we look forward to working together to drive growth in the public markets with increased capital and the benefit of HCMC’s relationships and experience.”  Furthermore, SOC’s equity holders including Warburg and Shulman will infuse cash into the company in order to pay off remaining debt and to capitalize on the balance sheet.  As a result, SOC shareholders will own 40 percent of the company and HCMC shareholders will hold 32 percent.

About Warburg and Shulman

Warburg Pincus is a private equity firm based in New York.  The firm has invested $84 billion in various companies and has more than $53 billion in assets under management.  The firm has a highly diverse portfolio.  Shulman is a private equity firm founded in 2008.  The firm primarily focuses on the healthcare industry. 

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