- Billionaire venture capitalist Chamath Palihapitiya is preparing to take Clover Health public. These are the details.
Billionaire venture capitalist Chamath Palihapitiya is preparing to take Clover Health public. Clover Health is a Medicare insurance that is backed by Alphabet. And Clover Health will be going public in a deal valued at $3.7 billion through a reverse merger with Social Capital Hedosophia Holdings Corp. III (NYSE: IPOC) – which is a special purpose acquisition company (SPAC).
The deal will include up to $1.2 billion in cash proceeds — $400 million of which will be provided through a private investment in a public entity (PIPE).
“What we have is a business that’s actually delivering the promise of technology-improving, better outcomes, and lower-cost health care,” said Palihapitiya in an interview on CNBC’s Squawk Box.
Palihapitiya said that this is a market that is consistently taking share year-over-year. And Palihapitiya said that it is one of the most straightforward investments he ever made.
This deal comes only 3 weeks after Palihapitiya revealed a $4.8 billion deal for real estate company Opendoor. Palihapitiya has been widely credit for reviving the popularity of SPACs after he took Virgin Galactic public in that format last year.
Launched in 2013, Clover Health offers Medicare Advantage in the U.S. Currently, it has over 57,000 members across 7 states.
