Benzinga | Jul 13, 2020 02:49AM EDT

Multiplan To Go Public In A Merger Deal With SPAC Churchill Capital At $11B Valuation

Multiplan on Sunday announced the company had reached a merger deal with special purpose acquisition company (SPAC) Churchill Capital III Corp. (NYSE:CCXX), which values the company at $11 billion.

What Happened

The merger will allow the healthcare solutions provider to go public without an initial public offering. Multiplan said its shares would list at the New York Stock Exchange.

The deal with Churchill Capital will bring the New York-based company $3.7 billion of new equity or equity-linked capital, which will help it "to substantially reduce its debt and fund new value-added services," the company said.

Multiplan is currently owned by private equity firm Hellman & Friedman. Churchill Capital, the firm it is merging with, was founded by former Citigroup Inc. (NYSE:C) banker Michael Klein and went public in February.

"This transaction allows us to create payer value beyond the tech-enabled cost management and payment integrity services we offer today," the company's Chief Executive Officer Mark Tabak said in a statement.

"As a public company, MultiPlan will have greater strategic and financial flexibility, making it better equipped to expand organically, through adjacent acquisitions and by investing in new technologies."

Electric vehicles maker Nikola Corporation. (NASDAQ:NKLA) earlier this year famously went public in a similar manner, and rival Fisker is also reportedly planning a merger with a SPAC.

Price Action

Churchill Capital shares closed nearly 2% higher at $10.81 on Friday.