AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

SPAC <a href="https://www.smartkarma.com/entities/healthcare-merger-corp" target="_blank" data-smartkarma-citation="entities:29273:1" rel="noopener">Healthcare Merger Corp (HCCO US)</a> 's pending merger with SOC Telemed, a leader in high acute telemedicine looks like another good wave to catch by SPAC investors. As we highlighted in our Insight published on September 3, 2020 - MergerTalk: SPACs May Have Become The Hot New Trend, But SPAC Investment Requires A Health Warning - the majority of these SPAC merger transactions have turned out to be poor investments. In that piece, we argued for selectivity and caution.  Of the winners, it appears that investors are most excited about transactions in “emerging” trends such as green mobility or pandemic resistant areas such as online gaming and packaged/healthy foods. We would add the Telehealth industry as another emerging trend that has garnered investor enthusiasm this year.While we have seen a couple of successful direct Telehealth IPOs this year, and a sizeable and high priced merger transaction in the sector  involving <a href="https://www.smartkarma.com/entities/teladoc-health-inc" target="_blank" data-smartkarma-citation="entities:14233:1" rel="noopener">Teladoc Health, Inc. (TDOC US)</a> and  <a href="https://www.smartkarma.com/entities/livongo-health-inc" target="_blank" data-smartkarma-citation="entities:28714:1" rel="noopener">Livongo Health Inc (LVGO US)</a>, the pending HCCO/SOC Telemed merger is the first of its kind in the SPAC investment space.  We believe that this somewhat differentiated Telehealth situation has the ingredients to join the exclusive club of winning SPAC related transactions. We detail our case for HCCO/SOC Telemed  as an attractive investment proposition below.

SPAC Healthcare Merger Corp (HCCO US) 's pending merger with SOC Telemed, a leader in high acute telemedicine looks like another good wave to catch by SPAC investors. As we highlighted in our Insight published on September 3, 2020 - MergerTalk: SPACs May Have Become The Hot New Trend, But SPAC Investment Requires A Health Warning - the majority of these SPAC merger transactions have turned out to be poor investments. In that piece, we argued for selectivity and caution.  Of the winners, it appears that investors are most excited about transactions in “emerging” trends such as green mobility or pandemic resistant areas such as online gaming and packaged/healthy foods. We would add the Telehealth industry as another emerging trend that has garnered investor enthusiasm this year.While we have seen a couple of successful direct Telehealth IPOs this year, and a sizeable and high priced merger transaction in the sector  involving Teladoc Health, Inc. (TDOC US) and  Livongo Health Inc (LVGO US), the pending HCCO/SOC Telemed merger is the first of its kind in the SPAC investment space.  We believe that this somewhat differentiated Telehealth situation has the ingredients to join the exclusive club of winning SPAC related transactions. We detail our case for HCCO/SOC Telemed  as an attractive investment proposition below.

MergerTalk: Healthcare Merger/SOC Telemed-Why This Deal Can Join The Exclusive SPAC Winners Club

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> announced they would acquire US-based medical-devices maker <a href="https://www.smartkarma.com/entities/varian-medical-systems-inc" target="_blank" data-smartkarma-citation="entities:7308:1" rel="noopener">Varian Medical Systems (VAR US)</a> in an all-cash deal that valued the company at ~US$16.4bn. As at the time of announcement, this was the largest healthcare M&amp;A transaction to be announced in 2020. I covered this event in "<a href="https://www.smartkarma.com/insights/varian-siemens-deal-dax-promotion-on-the-cards-for-the-acquirer" target="_blank" data-smartkarma-citation="insights:41857" rel="noopener">Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer</a>". Just three days later, on 5th August 2020, virtual healthcare powerhouse <a href="https://www.smartkarma.com/entities/teladoc-health-inc" target="_blank" data-smartkarma-citation="entities:14233:1" rel="noopener">Teladoc Health, Inc. (TDOC US)</a> announced they will be acquiring chronic-illness health-tech company <a href="https://www.smartkarma.com/entities/livongo-health-inc" target="_blank" data-smartkarma-citation="entities:28714:1" rel="noopener">Livongo Health Inc (LVGO US)</a> in a cash and scrip deal that valued the company at a market cap of US$15.5bn (going by cash-equivalent numbers based on pre-announcement closing price for Teladoc). With the COVID-19 pandemic forcing consumers to look for substitutes for conventional in-person health care, virtual health care providers have seen demand for their services rise significantly in the last few months, and both stocks have rallied sharply. The Deal will be conditional on receiving Livongo and Teladoc Shareholder Approvals, U.S. antitrust clearance, and meeting other customary closing conditions.The Transaction is expected to close by the end of 2020. As always, there is more below the fold.

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant Siemens Healthineers AG (SHL GR) announced they would acquire US-based medical-devices maker Varian Medical Systems (VAR US) in an all-cash deal that valued the company at ~US$16.4bn. As at the time of announcement, this was the largest healthcare M&amp;A transaction to be announced in 2020. I covered this event in "Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer". Just three days later, on 5th August 2020, virtual healthcare powerhouse Teladoc Health, Inc. (TDOC US) announced they will be acquiring chronic-illness health-tech company Livongo Health Inc (LVGO US) in a cash and scrip deal that valued the company at a market cap of US$15.5bn (going by cash-equivalent numbers based on pre-announcement closing price for Teladoc). With the COVID-19 pandemic forcing consumers to look for substitutes for conventional in-person health care, virtual health care providers have seen demand for their services rise significantly in the last few months, and both stocks have rallied sharply. The Deal will be conditional on receiving Livongo and Teladoc Shareholder Approvals, U.S. antitrust clearance, and meeting other customary closing conditions.The Transaction is expected to close by the end of 2020. As always, there is more below the fold.

Livongo-Teladoc: Virtual Healthcare Giants to Combine

United States

Teladoc Health, Inc. provides healthcare services. The Company diagnoses, recommends treatment, and prescribes medication for routine medical issues through phone and video consultations. Teladoc operates in the United States.

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Teladoc Health, Inc. (TDOC US)

MergerTalk: Healthcare Merger/SOC Telemed-Why This Deal Can Join The Exclusive SPAC Winners Club

$nealth

Robert Sassoon

Livongo-Teladoc: Virtual Healthcare Giants to Combine

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant Siemens Healthineers AG (SHL GR) announced...

Janaghan Jeyakumar, CFA

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