Ambulnz latest medical startup to ride the SPAC wave to go public

Founded in 2015, DocGo offers integrated, digital-first medical mobility services with on-demand service response and enhanced transparency including real-time vehicle location and accurate estimated arrival times. (Ambulnz/DocGo)

Ambulnz, a company that offers medical mobility and transportation services, plans to go public through a merger with a blank check company in a deal that will value the combined entity at $1.1 billion.

The company, which will be renamed DocGo, plans to merge with special purpose acquisition company (SPAC) Motion Acquisition Corp. Upon closing of the transaction, DocGo is expected to be listed on Nasdaq under the new ticker symbol "DCGO."

Founded in 2015, DocGo offers integrated, digital-first medical mobility services with on-demand service response and enhanced transparency including real-time vehicle location and accurate estimated arrival times, the company said.

The company has two complementary businesses operating at the intersection of mobility and technology. The startup provides non-critical medical services in patients' homes that bridge the gap between physical and virtual care. Services include testing, vaccinations, bloodwork, IV hydration, wound care, mobile imaging and EKGs, among others.

Working together with licensed practitioners, the DocGo's last-mile telehealth plus solutions leverage the company's technology, infrastructure, and staff of more than 1,700 paramedics and EMTs (emergency medical technicians) to deliver quality healthcare to patients in a convenient, affordable, and resource-optimized way, the company said.

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DocGo's medical transportation service can move all patients with the appropriate level of required care. It has a national footprint across its joint ventures, which includes partnerships with Fresenius, the nation’s leading dialysis service provider, Jefferson Health, UCHealth and RXR, a leading real estate owner and operator in the New York tri-state area.

The company operates in 26 U.S. states and in the UK. 

The deal with Motion Acquisition Corp is supported by a private investment of $125 million led by Light Street Capital with participation by Moore Strategic Ventures, an existing stockholder of DocGo. This will result in approximately $225 million of cash on the company's balance sheet, according to a press release.

The boards of directors of DocGo and Motion have unanimously approved the proposed business combination, which is expected to be completed in the second quarter of 2021.

DocGo's preliminary 2020 revenue rose 95% to $94 million from annual revenue of $48 million in 2019. For 2021, the company is on track to exceed $155 million in revenue and expects full-year EBITDA profitability and positive free cash flow, the company said.

Revenue for 2022 is currently forecasted to exceed $265 million. The company says it has tremendous growth opportunities, with a total addressable market of $95 billion.

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DocGo's management team, led by co-founder and CEO Stan Vashovsky, will continue to lead the combined Company, and Motion's CEO and Director, Michael Burdiek, will join the Company's board of directors upon completion of the transaction.

The deal with Motion Acquisition is expected to enable DocGo to continue to invest in rapid geographic expansion to service a growing pipeline of new business in conjunction with joint venture partners and others, forming a predictable recurring revenue base of approximately 70% of forecasted revenue for 2021.

"DocGo was built to bring a digital-first approach to last-mile telehealth and integrated medical mobility services that bridge the gap between physical and virtual care. The unique combination of our proprietary technology platform and care logistics expertise, along with our highly trained and motivated base of dedicated field professionals, has led to increased satisfaction and improved outcomes for patients as well as to superior service and lower cost for providers and payers," Stan Vashovsky, co-founder and CEO of DocGo, said in a statement.

"We are taking traditional healthcare beyond the walls of hospitals and clinics and offering in-home healthcare services at affordable price points to the broader community. We believe our rebranding to DocGo is representative of our mission. We are excited to partner with Motion and our new investors to realize DocGo's full potential as a public company," Vashovksy said.

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Earlier this week, another company joined the growing SPAC race.

Blueprint Health Merger, a blank check company formed by Blueprint Health targeting digital healthcare businesses, filed on Friday with the U.S. Securities and Exchange Commission (SEC) to raise up to $200 million in an initial public offering (IPO).

At the proposed deal size, Blueprint Health Merger would command a market value of $250 million.

The company is led by CEO and Director Rajiv Kumar, the former CMO of Virgin Pulse and co-founder and former CEO of ShapeUp, and Chairman Richard Harrington, the former CEO of The Thomson Reuters Corporation. 

Blueprint Health previously helped launch and fund over 80 digital health companies, many of which have scaled rapidly and been acquired, such as Doctor.com, Lumere, and DigitalSurgery.

By forming a digital health-focused SPAC, the Blueprint Health community will be focused on investing in and supporting later-stage ventures that are ready to go public via a SPAC. The company says it is leveraging an extensive, existing community of successful digital health entrepreneurs, executives, and investors for sourcing, diligence, and post-merger operational expertise.