P3 Health Partners and Foresight Acquisition Corp., have entered into a definitive agreement which would result in P3 becoming a publicly listed company. P3, a population health management group, serves several states, including Nevada, Florida, Oregon and Arizona.
Upon closing of the transaction, the combined entity will be renamed P3 Health Partners and is expected to remain listed on the Nasdaq Capital Market.
P3 is a patient-centered and physician-led population health management company that supports providers, physicians and practices in their journey from traditional volume-based models to value-based systems of care and wellness. P3 believes its extensive experience managing Medicare Advantage populations in global risk arrangements drives its differentiated model, which simultaneously improves care and decreases costs. P3 is a portfolio company of Chicago Pacific Founders, which provided P3’s initial and growth capital.
“Today marks an important milestone in our mission to transform health care for patients, providers and payors through value-based care,” P3 CEO Sherif Abdou said. “We have the right team and delivery model to help physicians and payors accelerate the move to value-based care within a growing market for Medicare beneficiaries. As a public company, we will continue to provide a differentiated approach to patient care for all key stakeholders while delivering proven care outcomes and enhancing patient and provider satisfaction.”
The combined company will have an estimated post-transaction enterprise value of $2.3 billion with an estimated equity value of $2.4 billion from the contribution of at least $180 million in cash proceeds from the transaction. Proceeds will consist of up to $316 million of cash held in Foresight’s trust account, assuming no redemptions by Foresight’s public stockholders, and an additional fully committed private investment of more than $200 million at $10 per share, including participation from funds and accounts managed by Fidelity Management & Research Company LLC and Janus Henderson Investors.
The net proceeds raised from the transaction will be used to support P3’s working capital and accelerate the national expansion of its proven platform.
The transaction is expected to result in P3’s existing members owning approximately 75% of the equity of the combined company. The business combination has been approved by the boards of directors of both P3 and Foresight and is expected to close in the second half of 2021, subject to regulatory and stockholder approvals and other customary closing conditions.