What the Company’s Leadership Has to Say
David T. Blair, Chairman and CEO of the company, said the money would go toward increasing access, efficiency, and quality of healthcare for those who need it.
"We are both pleased and humbled by the reception we've received from investors, and look forward to bringing to the market a company that effectively tackles our nation's increasingly complex healthcare challenges, particularly around disparities in access and outcomes, while delivering exceptional returns for our shareholders," he said.
Blair said that the company’s “blank check” structure, also known as a SPAC, or special purpose acquisition company, allows them to approach business in a new, innovative way.
"In an industry that thrives on scale,” said Blair, “a SPAC enables us to 'start at scale' and chart a path to transformative growth by combining the power of public markets with our extensive relationships and value creation playbook."
HSAC’s Relationship With Partners
One strength that Healthcare Services Acquisition Corporation has working in its favor is its positive relationship with its business partners. B. Riley Securities, Inc. is the company's book-running manager, and AllianceBernstein is its strategic partner.
The company also partners with Ropes & Gray LLP, who acts as issuer's counsel, Ellenoff Grossman & Schole LLP as underwriters' counsel, WithumSmith+Brown, PC as auditor, and Continental Stock Transfer & Trust Company LLC as trustee.
Senior Managing Director and Head of SPAC Banking at B. Riley Securities, Jonathan Mitchell, agreed with Blair and said in a statement that the company’s structure and IPO investment would enable them to make a difference in the healthcare world.
"This SPAC represents an attractive opportunity to invest in a top tier management team that is committed to creating value for the underserved middle-market healthcare industry. The overwhelming investor demand for this IPO speaks to the team's operational and investment acumen,” he said.
The Massive (and Still Growing) Global Healthcare Market
HSAC’s move into the healthcare market has the potential to score the company a valuable place in the large, growing world of global healthcare. The worldwide healthcare market was worth $8.45 trillion in 2018, according to insurance firm Policy Advice, and is expected to reach over $10 trillion by 2022.
The United States leads healthcare spending at $10,224 per capita and spends double the amount other countries do on treatment, meaning that the market is ripe for competition and presenting an ideal opportunity for HSAC.
Business Wire notes that while the global healthcare industry was previously growing at a compound annual rate of 7.3%, that number has since grown to about 9%, meaning that the already-thriving market’s best days could well be ahead of it.
All of these factors indicate a positive future for the relatively-new company, and show that with the right partnerships, it could be on its way to becoming a force in the growing market.
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.