USA’s Altaris to Acquire Sharecare in a $518 Mn Deal

The acquisition will be executed at $1.43 per share in cash, marking an 85% premium over Sharecare's closing price on June 20, 2024. 

US-based Private equity firm Altaris has agreed to acquire Sharecare for approximately $518 million. 

The acquisition will be executed at $1.43 per share in cash, marking an 85% premium over Sharecare's closing price on June 20, 2024. 

Sharecare, a prominent player in digital health, went public in 2021 through a SPAC merger valued at $3.9 billion. Subsequently, it expanded into home healthcare by acquiring CareLinx for $65 million.

Sharing insights, Jeff Arnold, executive chairman, Sharecare, said, "After embarking on a deliberate process to maximize stockholder value and best position Sharecare for continued growth and success, we carefully evaluated various options. Our Board of Directors determined that this transaction is in the best interests of Sharecare and its stockholders and, upon closing, will deliver significant, immediate, and certain value to our stockholders."

Sharecare’s Portfolio

Established in 2010 by Jeff Arnold, cofounder of WebMD, and Dr Mehmet Oz, Sharecare offers a comprehensive virtual health platform. This platform aims to streamline health management by consolidating various services into one accessible space. 

Further, Sharecare collaborates with healthcare providers, employers, health plans, and governmental bodies to optimize individual and population health. Their services include an app enabling users to store and access health data such as lab results and medications. 

Additionally, the app tracks health metrics like step counts, vital signs, and sleep patterns, offering personalized wellness advice.

Sharing thoughts on the deal, Brent Layton, CEO, Sharecare, said, "Today’s announcement not only delivers value for Sharecare’s stockholders but also will result in exciting opportunities for our employees and customers. This transaction is an important step forward to enable Sharecare's continued growth and evolution and further strengthens us as we deploy our innovative technology across the healthcare sector."

Financial Performance 

In the first quarter of 2024, Sharecare reported revenue of $90.9 million, down 22% year-over-year, alongside a net loss of $35.1 million. 

Adjusted EBITDA for the same period was negative $2.7 million, reflecting financial dynamics preceding the acquisition announcement. The transaction is slated for closure in the latter half of 2024, pending regulatory approvals and customary closing conditions.

Altaris, known for its exclusive focus on investments within the healthcare sector, anticipates leveraging its industry expertise and capital resources to support Sharecare’s strategic initiatives post-acquisition. 

Moreover, Jeff Arnold has committed to voting his shares in favor of the transaction, indicating confidence in the deal's alignment with Sharecare's long-term objectives.