Medical startup Ambulnz to go public in $1.1 billion SPAC merger deal

(Reuters) - Mobile medical services provider Ambulnz will go public through a merger with a special purpose acquisition company (SPAC) in a deal that values the equity of the merged entity at $1.1 billion, the companies said on Tuesday.

The deal with Motion Acquisition Corp is supported by a private investment of $125 million, and will fetch $225 million in proceeds to the combined company.

Ambulnz, which will be renamed DocGo, provides ambulance and other non-critical medical services in the UK and in 26 U.S. states, including New York, Colorado, Texas, California, Pennsylvania and others, its website showed.

The New York-based company lists UK’s National Health Service, the NFL and dialysis service provider Fresenius Medical Care as clients.

Ambulnz has administered about 25,000 vaccines and completed nearly 1.2 million tests through its unit, Rapid Reliable Testing, its website showed.

Motion Acquisition raised $115 million when it went public in October last year.

SPACs, or blank-check firms, are shell companies that raise capital through an initial public offering to acquire a private firm.

Ambulnz, whose revenue in 2020 rose 95% from a year earlier, was advised by Deutsche Bank Securities on the deal, while Barclays advised Motion.

Reporting by Niket Nishant in Bengaluru