Ambulnz Inc., a provider of mobile medical services and patient transportation, has agreed to go public through a merger with Motion Acquisition Corp.
The special purpose acquisition company is raising $125 million in new equity from investors including Light Street Capital and Moore Strategic Ventures to support the transaction, which is set to value the combined entity at about $1.1 billion, according to a statement Tuesday, following an earlier Bloomberg report.
Ambulnz, to be renamed DocGo Inc., is led by Chief Executive Officer Stan Vashovsky. The New York-based company, which operates in 23 U.S. states and the U.K., offers non-critical medical services to patients at home including vaccinations, blood work and testing, according to the statement.
“We’re excited to invest further in our TeleHealth Plus business, which has grown tremendously in the past year,” Vashovsky said in an interview, referencing the company’s last-mile telemedicine services which bridge the gap between a video or voice call and a visit to a physician’s office.
The SPAC transaction arms the company with cash to further expand its national footprint and with public currency to pursue acquisitions in related fields such as personal emergency response systems, Vashovsky said.
The firm can provide data including real-time vehicle locations, and was the largest private ambulance operator responding to the pandemic in New York State, its website shows. The company also operates Covid-19 mobile testing and vaccination units through an arm known as Rapid Reliable Testing, which has handled about 1.2 million tests and administered about 25,000 vaccines.
The company, which has partnerships with dialysis specialist Fresenius Medical Care, New Jersey hospital network Jefferson Health and Colorado’s UCHealth, also provides on-site medical services at events. It posted revenue of about $94 million in 2020, nearly double the year-earlier amount. That figure is expected to surpass $155 million this year.
Motion Acquisition, led by CEO Michael Burdiek, raised $115 million in an October initial public offering and said at the time it would focus on searching for target businesses in connected vehicle industries globally.
While there are other companies focused on telehealth, such as Teladoc Health Inc. and American Well Corp,. none dispatch licensed care professionals to patients at home, Burdiek said.
Like most CEOs striking deals during the pandemic, Vashovsky and Burdiek have yet to meet — the entire transaction was negotiated via Zoom.