MPLN
MultiPlan Corp
Healthcare, SPAC
09/07/2020
Presented
| Date | 09/01/2020 |
| Price | $11.44 |
| Market Cap | $1.56B |
| Ent Value | $1.56B |
| P/E Ratio | N/A |
| Book Value | N/A |
| Div Yield | 0% |
| Shares O/S | 110.00M |
| Ave Daily Vol | 2,025,077 |
| Short Int | N/A |
Current
| Price | $10.30 |
| Market Cap | $0.17B |
| MultiPlan, Inc. provides data analytics and cost management solutions to the U.S. healthcare industry. The company offers analytics-based services, which reduce medical costs for consumers and payors via data-driven algorithms that detect claims anomalies; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment integrity services, which reduce medical and dental costs by identifying and removing improper and unnecessary charges before claims are paid. It operates as a trusted partner to approximately 700 healthcare payors in the commercial health, dental, government, and property and casualty markets. The company was founded in 1980 and is headquartered in New York, New York. |
Please note, on 10/09/20 Churchill Capital Corp III (CCXX) and MultiPlan, Inc. merged to create a new entity, MultiPlan, Inc. (MPLN). The content of this idea will make reference to the original company name and ticker symbol, Churchill Capital Corp III (CCXX).
Publicly traded companies mentioned herein: Churchill Capital III Corp (CCXX), The Carlyle Group (CG), HealthEquity Inc (HQY), HMS Holdings Corp (HMSY), Inovalon Holdings Inc (INOV)
Highlights
The presenter is long shares of Churchill Capital III Corp (CCXX). On July 12, 2020, CCXX, a special purpose acquisition vehicle, and MultiPlan, a provider of healthcare cost management solutions, announced that they had entered into a definitive agreement to merge, and the deal should close sometime between October and November of this year. The combined entity will operate as MultiPlan and will be listed on the NYSE. MultiPlan is a leader in driving down the out-of-network healthcare costs and lists the 10 largest insurers in the U.S. as customers. Its closet comps are HMS, Inovalon, HealthyEquity, etc., which trade anywhere between 16x - 22x EBITDA. CCXX currently trades at $11.45/share or ~13x EBITDA. The presenter believes that if CCXX/MultiPlan continues to show strong organic growth and is able to expand into areas beyond out-of-network claims, like in-network and P&C claims, the multiple should rerate and the company should trade inline with its comps.
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