DocGo plans to acquire virtual care provider Hicuity Health as part of its strategy to create a more connected healthcare platform spanning hospitals, virtual care and patients' homes. The proposed transaction was announced alongside DocGo's second-quarter financial results, which showed a wider net loss and lower revenue as the company continued winding down migrant-related healthcare programs.
Under the agreement, DocGo will acquire Hicuity primarily by assuming approximately $52 million of existing debt held by Perceptive Advisors, with the debt's maturity extended to December 2029. Hicuity's preferred shareholder will also receive DocGo equity equivalent to approximately 2% of the company's currently outstanding shares, with the potential to receive an additional 3.5% stake if DocGo reaches a $250 million market capitalization within three years of closing.
Perceptive Advisors has also committed to provide DocGo with up to $50 million in additional debt financing through multiple tranches. The first $12.5 million is expected to become available after the companies enter a management services agreement that will allow DocGo to provide certain services to Hicuity ahead of the acquisition's completion.
Hicuity Health provides virtual clinical services to hospitals, health systems and post-acute facilities, including tele-ICU care, virtual nursing and telemetry monitoring. The company generated approximately $65 million in revenue over the past 12 months. Adding these capabilities would complement DocGo's existing mobile health, remote patient monitoring, ambulance and virtual care businesses, helping the company connect care across inpatient settings and the home.
The acquisition comes as DocGo faces near-term financial pressure. The company reported a second-quarter net loss of $18 million, compared with $13.3 million in the prior-year period, while revenue declined to $73.4 million from $80.4 million. DocGo now expects full-year revenue between $305 million and $310 million, with its outlook excluding any potential contribution from Hicuity.
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