MSP Recovery, which recovers Medicare and Medicaid secondary payments for patients, is in talks to go public through a merger with Lionheart Acquisition Corp. II, a special purpose acquisition company (SPAC), Bloomberg reported.
A deal could be announced in the next several weeks to create a company valued at more than $30 billion, Bloomberg reported, citing an unnamed source.
As part of the negotiation, MSP Recovery’s law firm affiliate may separate from its data business, according to Bloomberg. The latter is in talks to be combined with the Lionheart SPAC. The deal is not finalized and could still collapse.
Neither an MSP representative nor a Lionheart spokesperson had any comment to Bloomberg on its report of merger talks.
The Playbook noted that “most patients are interested in payment plans and simplified payment processes, but many have experienced unpleasant surprises when paying their bills. Frictions at checkout can be removed by offering clear, highly visual information that details the billing process, payment options and copays.”
Lionheart raised $230 million in its initial public offering (IPO) in August, and CEO Ophir Sternberg said at the time the company wasn’t narrowing its focus based on industry, sector or geography but would merge with a firm focused on using digital technology and tech services in all aspects of the real estate sector, Bloomberg reported.
MSP, which is based in Coral Gables, Florida, fits the bill as a Lionheart target. It operates a platform that specializes in claims recoveries, getting paid only once those recoveries are finalized, according to Bloomberg.