The co-founder and former co-CEO of insurance company Oscar Health has identified a supplier to go public through the special-purpose acquisition company he leads.
American Oncology Network plans to go public through a partnership with Digital Transformation Opportunities Corp., a drum testing company founded in early 2021 by CEO Kevin Nazemi and other executives in the industry. technology and healthcare industries.
The oncology provider will be the second of its kind to be publicly traded on NASDAQ as a result of its association with SPAC. The Institute of Oncology was the first oncology specialist to go on the stock market in November 2021 following a merger with drum screening company DFP Healthcare Acquisitions Corp.
The American Oncology Network deal, scheduled to close in the first half of 2023, values the combined company at $500 million. The American Oncology Network senior leadership team will continue to guide the company after the transaction is complete.
“We are pleased to use our growth capital and partnership with the DTOC team to continue investing in technology and services that will support our physician partners and enhance our value proposition.” AON,” American Cancer Network CEO Todd Schonherz said in a press release.
SPAC mergers are a popular vehicle for going public because a company only has to convince the shell company of its value, not a broader audience of potential investors. power. Transactions spiked in 2020 before slowing down this year.
Founded in 2018, the Florida-based American Cancer Network represents approximately 100 physicians and 90 advanced practitioners across 18 states. The company’s revenue grew from $320 million in 2019 to $944 million in 2021, according to a regulatory filing.
If the deal fails because American Oncology Network enters into a definitive agreement with another entity, the company must pay Digital Transformation Opportunity an $18 million termination fee.
The companies did not immediately respond to requests for interviews.
“We launched DTOC with a commitment to our investors to partner with a high-growth platform that is leveraging technology to drive innovation in the healthcare industry, and we couldn’t be happier. more than fulfilling that commitment today through our partnership with AON,” Nazemi said in a press release.
