Dzmitry Dzemidovich
- SPAC DTRT Health Acquisition (NASDAQ:DTRT) announced Thursday it has signed a definitive merger deal to take Consumer Direct Holdings (CDH) public at $681M valuation of the combined company.
- That implies 10.1x pro forma 2023 adjusted EBITDA, where CDH's shareholders will own about 61% immediately after closing of the business combination.
- Based in Montana, Consumer Direct Holdings is a in-home personal care provider that supports aging adults and individuals with disabilities in their daily living.
- The blank check company commented "operating model based on multi-year contracts creates steady revenue growth and margin stability."
- The merger transaction is expected to deliver $234M of cash held in DTRT’s trust account and up to $150M in debt financing, in addition to $99M of cash on CDH’s balance sheet
- Upon closing, the combined company will be listed as "Consumer Direct Care Network" on Nasdaq under the ticker symbol "CDCN".
- DTRT Health said the transaction is expected to be completed in Q1 2023.
- Read more about SPACs, here.