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

July 31, 2020 | Latest News, News, Private Equity
https://dailyalts.com/wp-content/uploads/2020/07/news-soc-telemed-to-merge-with-public-investment-company-modern-healthcare.jpeg

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. 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/dragon-872933_640.jpg
FinTech: China Tightens Antitrust Regulatory Screws On Fintechs
January 22, 2021     FinTech, Latest News, News, Regulations

The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the…

https://dailyalts.com/wp-content/uploads/2021/01/bitcoin-4353069_640.jpg
Digital Assets: BlackRock Dips Its Toes In Bitcoin Waters
January 22, 2021     Digital Assets, Latest News, News

Filings out Wednesday show that the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund may invest in cash-settled bitcoin futures, among other assets. BlackRock (NYSE: BLK), the world’s…

https://dailyalts.com/wp-content/uploads/2021/01/summer-169643_640.jpg
Artificial Intelligence: AI Helping Manage Wind Farms By Forecasting Wind Conditions
January 22, 2021     Artificial Intelligence, News

AI is playing an increasingly bigger role in the management of wind energy, wind farms, and the maintenance of wind turbines through machine condition monitoring systems. Google (NASDAQ: GOOGL) predicts…

https://dailyalts.com/wp-content/uploads/2021/01/electric-car-2783573_640.jpg
Alternative Investments/ESG: Harvest Portfolios Launches The Harvest Clean Energy ETF

Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on…