TLMD

Please note, on 1/28/20 Healthcare Merger Corp (HCCOU) changed its company name and ticker to Soc Telemed Inc (TLMD). The content of this idea will make reference to the original company name and ticker symbol.

Publicly traded companies mentioned herein: Community Health Systems Inc (CYH), Healthcare Merger Corp (HCCOU), Prudential Financial Inc (PRU), Teladoc Health Inc (TDOC)

Highlights

The presenter is long shares of Healthcare Merger Corp (HCCOU), a SPAC that is merging with SOC Telemed (“SOC”) in a transaction that will close in late 2020 and values SOC at $721MM. SOC has been financed by Warburg Pincus for the last several years and is the largest national provider of acute care telemedicine. The presenter thinks SOC’s value prop to hospital networks is strong, as evidenced by the company’s penetration thus far. He further believes there is a significant growth runway, both in its existing market and by expanding to other use cases. In addition, given SOC’s position in the telemedicine space, he feels that the ~9x 2021 revenue valuation implied by the $721MM transaction is low, as telehealth peers trade significantly above that multiple.