This promising merger is expected to close in the second quarter of 2021, with a total combined company value of approximately $1.1 billion.
DocGo, which is in the process of rebranding as Ambulnz, a mobile medical services provider and patient transport company, announced earlier this month that it plans to merge and take the company public with special purpose acquisition company Motion Acquisition Corp.
Once completed, the merger will generate approximately $225 million in cash for the combined company, including $125 million from a private placement (PIPE) of common stock at a price of $10.00 per share, according to the announcement.
In terms of corporate structure, Stan Vashovsky, CEO and co-founder of DocGo, will remain as CEO of the combined company, while Michael Burdiek, CEO and director of Motion, will join the board of directors.
Optimizing Remote Care
Soon to be Ambulnz has established itself as a pioneer in remote care with its Telehealth Plus services. The solution allows patients to receive non-emergency medical services such as tests, vaccinations, wound care, mobile imaging and more from the comfort of their own homes. It also provides innovative medical transportation services offering real-time vehicle location and estimated arrival times.
Currently, the company’s services are implemented in 23 states in the United States and the United Kingdom. By entering the stock market, DocGo hopes to further expand its services.
At the time of the merger announcement, the technology company released its financial projections for the coming years. After doubling its revenue in just one year, from $48 million in 2019 to $94 million in 2020, DocGo expects continued revenue growth to $155 million for 2021 and $265 million by the end of 2022.
The Rising Market for Remote Care
The growing need for optimized remote care has driven tech companies in the sector to grow at a rapid pace.
Heal, which started as an app that helps users schedule doctor phone calls , recently began offering services such as virtual follow-up appointments, telepsychiatry services and a monthly subscription, combining both telehealth and home medical services, providing a well-rounded remote care solution.
In addition, the company also began a partnership with Humana last year to offer its services to health plan members and expand the Heal network.
DispatchHealth has also grown rapidly due to telehealth demand stemming in part from the pandemic. Having secured $200 million in a Series D funding round earlier this month, the company is set to expand its home care platform to 100 markets.
Ro, the direct-to-consumer virtual care company, also moved into the remote care sector last December with the acquisition of Workpath, an on-demand home care platform. The partnership, as part of a New York State Department of Public Health program, allowed Ro to offer vaccinations to seniors and people with disabilities right from the comfort of their own homes, optimizing remote care while minimizing hospital overcrowding.