MSP Recovery, which helps recover money from Medicare and Medicaid secondary payments, will go public through a deal with a blankcheck firm, giving the combined company an enterprise value of 32.6 billion in the second biggest SPAC merger.
The deal with Lionheart Acquisition Corp II is expected to fetch 230 million in proceeds for MSP, it said on Monday.
MSP, led by billionaire entrepreneur John Ruiz, specializes in the recovery of Medicare and Medicaid payments. Its platform can be used to identify and recover claims its clients should never have paid, according to its website.
The Floridabased company, founded in 2014, earns a fee after a successful recovery.
Special purpose acquisition companies, or SPACs, are shell companies that raise funds through an initial public offering to take a private company public through a merger at a later date.
Lionheart raised 230 million in an initial public offering in August. The companys shares were up 5.2 at 10.40 in trading before the bell.
At 32.6 billion, the merger is second in size only to the nearly 40 billion deal inked in April between Southeast Asias Grab and Altimeter Growth Corp.
The MSP deal is also the largest since the U.S. Securities and Exchange Commission said it was considering new rules to protect investors amid a surge in the use of SPACs as capitalraising vehicles.
It also pointed to a rebound in merger activity in the blankcheck space after Wall Streets appetite showed signs of waning following a…