Churchill Capital Corp III Secures Over $3.6 Billion for MultiPlan Deal Following Redemption Period

Churchill Capital Corp III announced the successful completion of its redemption deadline related to the MultiPlan business combination, with significant implications for the transaction’s funding structure. The investment vehicle, trading under ticker CCXX on the New York Stock Exchange, will bring substantial capital to the healthcare analytics sector through this strategic merger.

Capital Position Strengthens Deal Structure

The redemption period concluded with over $1 billion remaining in Churchill III’s trust account, out of the original $1.1 billion raised during the February 2020 initial public offering. This represents a strong vote of confidence from shareholders in the proposed transaction. When combined with approximately $2.6 billion in committed financing from external sources, the total capitalization for the deal reaches over $3.6 billion at closing.

This robust financial foundation positions the combined entity to pursue aggressive expansion strategies and address leverage concerns. The accumulated capital will enable meaningful investments in growth initiatives and potential acquisitions within the healthcare technology sector, while simultaneously reducing debt obligations.

Transaction Timeline and Shareholder Vote

Churchill III’s Board of Directors has unanimously endorsed the business combination proposal and recommended shareholder approval. The special stockholders meeting is scheduled for October 7, 2020, with the anticipated transaction close occurring on October 8, 2020, subject to final regulatory approval and customary closing conditions.

Shareholders of record as of September 14, 2020 hold voting rights at the special meeting. Churchill III has expressed appreciation for the support demonstrated by both its shareholders and the financing community throughout this process.

MultiPlan’s Market Position

MultiPlan operates as a data analytics and technology-driven cost management provider serving the U.S. healthcare industry. The company serves over 700 healthcare payors across commercial health, dental, government, and property and casualty insurance markets. The organization combines payment integrity services, network-based solutions, and advanced analytics capabilities to address healthcare cost pressures.

Hellman & Friedman and other investors currently own MultiPlan. The business combination will provide the capital necessary for MultiPlan to expand its market reach and technological capabilities across the healthcare ecosystem.

Strategic Implications

The Churchill Capital Corp III transaction represents a significant development in healthcare technology finance. The deal’s substantial capitalization and structure enable the combined entity to compete effectively in the evolving healthcare cost management landscape. Industry observers view the strong shareholder support and financing commitments as validation of the business strategy and market opportunity.

Churchill III was founded by prominent business and financial leaders with the objective of identifying and executing transformational business combinations. The sponsor company, Churchill Capital Corp, previously facilitated the May 2019 combination with Clarivate Analytics, a comprehensive intellectual property and scientific information provider. Additional Churchill Capital investment vehicles continue evaluating potential business combination opportunities across various industries.