CareMax To Acquire Medicare Value-based Care Business Of Steward Health Care System

(RTTNews) - CareMax, Inc. (CMAX) and Steward Health Care System announced a merger deal pursuant to which CareMax will acquire the Medicare value-based care business of Steward for a combination of cash and stock. CareMax will pay $25 million in cash and issue 23.5 million shares of CareMax's class A common stock to the equityholders of Steward at closing. Also, CareMax will fund a Medicare receivable to Steward covering accounts receivable related to 2021 and the pre-close period of 2022.

Steward will have the potential to receive an earnout of additional shares of CareMax's class A common stock that, together with the original issuance of class A common stock issued to Steward at the initial closing, would result in Steward's equityholders owning a total of 41% of CareMax's class A common stock as of the initial closing.

Upon closing, CareMax will serve as the exclusive value-based management services organization across Steward's Medicare network. CareMax's network will expand to approximately 2,000 providers and reach over 200,000 senior value-based care patients across 30 markets.