A blank-check company backed by real-estate investor Barry Sternlicht is in talks to merge with Cano Health LLC in a $4.4 billion deal that would take the health-care provider for seniors public, according to people familiar with the matter.
Mr. Sternlicht’s special purpose acquisition company, Jaws Acquisition Corp. , could announce a deal valuing Cano Health at $4.4 billion, including debt, as soon as Thursday, the people said—assuming the talks don’t fall through at the last minute.
As is typical in SPAC deals, as part of the transaction, Cano Health would receive an investment—in this case totaling roughly $800 million—from several investors, including Mr. Sternlicht, one of the people said.
Blank-check companies turn the typical IPO model on its head, raising money by going public before they have a business and then hunting for a target—usually over a period that lasts as long as two years. Investors have poured money into such vehicles at record levels this year as the coronavirus pandemic and market volatility make traditional IPOs trickier to pull off.
Jaws went public in May and had a market value of about $875 million as of Wednesday afternoon. Any deal would be subject to a shareholder vote.