Cano Health nears $4.4 billion deal with Barry Sternlicht-backed SPAC: WSJ

Industry:    2020-11-12

Blank-check company Jaws Acquisition Corp plans to take healthcare provider Cano Health LLC public in a $4.4 billion deal including debt, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The special purpose acquisition company (SPAC), backed by real-estate investor Barry Sternlicht, could announce the deal as soon as Thursday, according to the report.

The primary care center operator will receive an investment of about $800 million from several investors, including Sternlicht, the Journal reported.

A SPAC is a shell company that uses IPO proceeds to buy another company, typically within two years, in a merger that will take the acquired company public. Investors are not notified in advance on what company the SPAC will buy.

SPACs have been behind some of the most high-profile public listings this year, including online betting firm DraftKings and billionaire investor Richard Branson’s space tourism firm Virgin Galactic Holdings Inc.

Jaws Acquisition declined to comment, while Cano Health did not immediately respond to a Reuters request for comment.

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