Private equity firm Altaris plans to take Sharecare private in $518M acquisition deal

Digital health company Sharecare has agreed to be acquired by private equity firm Altaris for $1.43 in cash per share, or about $518 million.

The merger consideration of $1.43 per share represents a premium of approximately 85% over the closing price of Sharecare on June 20, 2024. Altaris plans to take Sharecare private once the deal is finalized.

Altaris is an investment firm exclusively focused on the healthcare industry.

The company was founded in 2010 by Jeff Arnold, founder of WebMD, and Dr. Mehmet Oz. Sharecare provides a comprehensive and data-driven virtual health platform designed to help people manage all their health in one place.

The company works with providers, employers, health plans and government organizations to optimize individual and population-wide health and well-being. For individuals, Sharecare offers an app to store and access health information, including lab results and medications, as well as health benefits information along with health and wellness tracking like step count, vital signs and sleep data. The app also offers personalized health and wellness tips.

The company went public in 2021 through a special purpose acquisition company (SPAC) deal to access more capital via the public market. Sharecare went public via a merger with Falcon Capital Acquisition Corp. for about $3.9 billion.

The company expanded into home health three years ago with the $65 million acquisition of CareLinx. With that deal, Sharecare gained a network of over 450,000 tech-enabled caregivers. CareLinx delivers intermittent on-demand personal care services in people’s homes, while leveraging mobile technology to facilitate population health analytics and the enabling of real-time care coordination with remote clinical teams. 

"After embarking on a deliberate process to maximize stockholder value and best position Sharecare for continued growth and success, we carefully evaluated a variety of options. Our Board of Directors determined that this transaction is in the best interests of Sharecare and its stockholders and, upon closing, will deliver significant, immediate, and certain value to our stockholders," Arnold, Sharecare’s executive chairman of the Board of Directors said in a statement.

Arnold added, “With Altaris as a partner, we are excited to continue executing on Sharecare’s mission with the benefit of their deep healthcare industry expertise, as well as increased capital and strategic and operational flexibility to continue providing industry-leading solutions to our customers across our three channels.”

The transaction is expected to close in the second half of 2024.

Arnold has agreed to vote his shares in favor of the transaction and will roll over substantially all of his existing equity and continue to be a significant shareholder following this transaction.

Arnold will continue to serve as executive chairman and Layton as CEO, and Sharecare’s current executive leadership team is expected to continue in their roles following the close of the transaction.

“Today’s announcement not only delivers value for Sharecare’s stockholders but also will result in exciting opportunities for our employees and customers,” said Brent Layton, CEO of Sharecare, in a statement. “This transaction is an important step forward to enable the continued growth and evolution of Sharecare, and further strengthens us as we deploy our innovative technology across the healthcare sector.”

In the first quarter of 2024, Sharecare reported revenue of $90.9 million compared to $116.3 million, down 22% or $25.4 million from a year ago.

The company reported a net loss of $35.1 million compared to $34.7 million, an increase of $0.4 million. The company also reported adjusted EBITDA of negative $2.7 million compared to adjusted EBITDA of $600,000 a year ago.