Cano Health, which operates primary health care centers for seniors in Florida, Texas, Nevada, and Puerto Rico, is going public through a SPAC deal with Jaws Acquisition Corp worth $4.4 billion. The Barry Sternlicht backed SPAC has been listed on New York Stock Exchange since May.
Cano Health is one of the fastest growing value based Medicare Advantage providers, a market that is expected to grow to $590 billion by 2025. This deal will help Cano expand and pay down debt, as it is expected to receive up to $935 million in transaction proceeds. Of those proceeds, $456 million is expected to be allocated to Cano Health’s financial sponsor.
SPAC deals have been emerging as a popular IPO alternative for companies this year. Notable companies which have used this route include DraftKings, an online betting firm, and Richard Branson’s space tourism company Virgin Atlantic.