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MultiPlan to Combine with Churchill Capital Corp III to Drive Growth Opportunities in Healthcare Market
Wednesday 15 July 2020

US-based equity growth investment company Churchill Capital Corp III (NYSE: CCXX) and US-based MultiPlan, Inc., a provider of healthcare cost management solutions, have agreed to merge and operate as MultiPlan, to fuel organic and acquisition growth opportunities, the company said.

Churchill will contribute up to USD 1.1bn of cash raised during its initial public offering in February 2020.

Further, additional investors have committed to participate in the transaction through PIPE commitments to a USD 2.6bn new private capital raise consisting of a USD 1.3bn common stock at USD 10 per share and USD 1.3bn of 6 % interest convertible debt, with a conversion price of USD 13 per share.

The total investment of up to USD 3.7bn raised in this transaction will be used to pay down existing debt, purchase a portion of the equity owned by existing MultiPlan shareholders and capitalise the MultiPlan balance sheet.

The transaction implies an initial enterprise value for MultiPlan of approximately USD 11bn or approximately 12.9x estimated 2021 Adjusted EBITDA. The transaction will bring to MultiPlan up to USD 3.7bn of new equity or equity linked capital to substantially reduce its debt and fund new value-added services.

The capital from this transaction, combined with Churchill's expertise, will enable MultiPlan to continue to enhance its core offerings to payers through a significant increase in its data analytics platform, extend into new payer customer segments and expand its platform, increasing the value MultiPlan provides to more than 700 payers, their 60m consumers and MultiPlan's 1.2m providers that serve them.

The transaction will better position MultiPlan to capitalise on the entire USD 50bn total addressable market, rather than its current subset of USD 8bn, organically and through M and A.

Citigroup is serving as the private placement agent and capital markets advisor to Churchill. Citigroup and Goldman Sachs served as financial advisors and Weil, Gotshal and Manges LLP served as legal counsel to Churchill.

Credit Suisse served as a capital markets advisor to Churchill. Citigroup and Goldman Sachs were joint book running managers for Churchill Capital Corp III.

Centreview Partners, Barclays, BofA Securities and UBS Investment Bank served as financial advisors to MultiPlan. Kirkland and Ellis and Simpson Thacher and Bartlett served as legal counsel to MultiPlan and H and F.

Churchill Capital Corp III is a NYSE listed, USD 1.1bn company, and is the third vehicle in the Churchill Capital group of companies.

Churchill's strategy is to identify and complete initial business combinations with companies in growing industries that will be catalysed by the growth capital and transparency of the public equity markets and will be enhanced by the experience and expertise of Churchill's Operating and Strategic Partners.

MultiPlan helps healthcare payers manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics, and a team rich with industry experience, MultiPlan interprets clients' needs and customises innovative solutions that combine its payment integrity, network-based and analytics-based services.
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Date Published: 15/07/2020

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