- DocGo™ leverages its technology, infrastructure and staff across the U.S. and the U.K. to provide on-site services that bridge the gap between physical and virtual care in a convenient, affordable and resource-optimized way.
- DocGo generated preliminary 2020 revenue of $94 million, a 95% increase from 2019. For 2021, the company is on track to exceed $155 million in revenue and expects full-year EBITDA profitability and positive free cash flow.
- The transaction is expected to enable DocGo to continue to invest in rapid geographic expansion to service a growing pipeline of new business in conjunction with joint venture partners and others, forming a predictable recurring revenue base of approximately 70% of forecasted revenue for 2021.
- The transaction implies an equity value of approximately $1.1 billion, with DocGo expected to have approximately $225 million of cash and cash equivalents on the Company's post-combination balance sheet assuming no redemptions by Motion's pre-combination stockholders. As part of the transaction, Motion has a fully committed PIPE of $125 million led by Light Street Capital with participation by Moore Strategic Ventures, an existing stockholder of DocGo, as well as up to $115 million of cash held in the trust account of Motion.
- All net cash proceeds will be retained by the combined Company, with existing DocGo stockholders rolling 100 percent of their equity into the combined Company.
- The transaction is expected to close in the second quarter of 2021, and the combined Company is expected to be listed on Nasdaq under the symbol "DCGO".
- An investor call will be held today, March 9, 2021 at 8:00 a.m. ET with a replay available.
Ambulnz, Inc., to be renamed DocGo, Inc. (“DocGo” or the “Company”), a leading provider of last-mile telehealth and integrated medical mobility services, and Motion Acquisition Corp. (Nasdaq: MOTN) (“Motion”), a publicly traded special purpose acquisition company, announced today that they have entered into a definitive agreement for a business combination. Upon closing of the transaction, DocGo is expected to be listed on Nasdaq under the new ticker symbol “DCGO”.
Company Overview
- Founded in 2015, DocGo offers integrated, digital-first medical mobility services with superior on-demand service response and enhanced transparency including real-time vehicle location and accurate estimated arrival times.
- Working together with licensed practitioners, the Company’s last-mile TeleHealth Plus solutions leverage DocGo’s technology, infrastructure, and staff of more than 1,700 paramedics and EMTs (emergency medical technicians) to fulfill the promise of telehealth by enabling the delivery of quality healthcare to patients in a convenient, affordable, and resource-optimized way.
- TeleHealth Plus services include testing, vaccinations, bloodwork, IV hydration, wound care, mobile imaging and EKGs, among many others. TeleHealth Plus services are currently provided on a business-to-business basis to large hospital networks, insurance providers, municipalities and large commercial enterprises.
- DocGo has established exclusive joint venture partnerships with industry leaders including Fresenius Medical Care, the nation’s leading dialysis service provider, Jefferson Health, a leading hospital network in Pennsylvania, UCHealth, a leading hospital network in Colorado, and RXR Realty, a leading real estate owner, operator and developer in the New York Tri-State area. These strategic long-term relationships provide a predictable and recurring revenue base and serve as anchor customers with dependable start-up revenues in new geographic markets as the Company expands its U.S. footprint.
- DocGo participates in a $95 billion addressable market and currently operates in 23 states in the U.S. and in the U.K.
The Company generated preliminary 2020 revenue of $94 million, nearly double 2019 revenue of $48 million. The Company expects 2021 revenue of more than $155 million and anticipates continued growth for the remainder of the year. Revenue for 2022 is currently forecasted to exceed $265 million. DocGo’s management team, led by co-founder and CEO Stan Vashovsky, will continue to lead the combined Company, and Motion’s CEO and Director, Michael Burdiek, will join the Company’s board of directors upon completion of the transaction.
Management Comments
Stan Vashovsky, co-founder and CEO of DocGo, said:
“DocGo was built to bring a digital-first approach to last-mile telehealth and integrated medical mobility services that bridge the gap between physical and virtual care. The unique combination of our proprietary technology platform and care logistics expertise, along with our highly trained and motivated base of dedicated field professionals, has led to increased satisfaction and improved outcomes for patients as well as to superior service and lower cost for providers and payers. We are taking traditional healthcare beyond the walls of hospitals and clinics and offering in-home healthcare services at affordable price points to the broader community. We believe our rebranding to DocGo is representative of our mission. We are excited to partner with Motion and our new investors to realize DocGo’s full potential as a public company.”
Michael Burdiek, CEO and Director of Motion Acquisition Corp., said:
“Motion has been seeking to partner with a vertical market leader at the intersection of mobility and technology. With a highly experienced management team, best-in-class partners, proprietary technology, and an innovative, scalable business model, we believe DocGo represents a tremendous opportunity in a large and attractive market. DocGo has a proven growth strategy and profitable CapEx-light business model, and the Company is now aggressively expanding its geographic footprint to service the contracted demand from its anchor customers. We look forward to working with Stan and the entire DocGo team to help bring enhanced healthcare mobility services to the comfort of patients’ homes across a rapidly expanding geographic footprint.”
Transaction Overview
The business combination values the combined Company at an approximately $1.1 billion pro forma equity value and will result in approximately $225 million of cash on the company’s balance sheet, assuming no redemptions by Motion’s public stockholders, including a $125 million fully committed common stock PIPE at $10.00 per share.
The boards of directors of DocGo and Motion have unanimously approved the proposed business combination, which is expected to be completed in the second quarter of 2021, subject to, among other things, the approval by Motion’s and DocGo’s stockholders of the business combination, the closing of the concurrent PIPE transaction, and the satisfaction or waiver of other customary closing conditions. Stockholders of DocGo holding a sufficient number of shares to approve the business combination have executed support agreements to vote in favor of the business combination.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Source: Biospace