Should You Invest in MultiPlan’s SPAC IPO?

Churchill Capital III (NYSE: CCXX.U) is the latest special purpose acquisition company (SPAC) to announce a deal. The "blank check" company announced it will merge with MultiPlan, a provider of healthcare management cost solutions for healthcare payers, providers, and customers. A SPAC is an investment vehicle that is formed for the purpose of merging with a private company to take it public. Therefore, Churchill Capital's acquisition of MultiPlan is a substitute for an initial public offering (IPO).

MultiPlan is a technology-based company that uses algorithms and big data to provide healthcare cost management and data analytics for payers, providers, and customers. In a nutshell, MultiPlan is helping to make healthcare more affordable in America. Last year, the company worked with hundreds of health insurance companies and saved customers an estimated $19 billion.

Churchill Capital is proposing to inject MultiPlan with $3.7 billion as part of the merger. This will be accomplished through $1.1 billion of cash it has already raised with its SPAC and an additional $2.6 billion in equity it will raise through an additional equity offering. The deal is expected to close by the end of October.

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Source Fool.com