Investors can breathe a sigh of relief. Online therapy provider Talkspace is coming public via blank-check Hudson Executive Investment (NASDAQ:HEC). Ahead of the deal, what should you know about HEC stock? And why is a Talkspace SPAC merger so promising?
To start, what exactly is Talkspace? Well, the company touts itself as the top-rated mobile and online therapy company. Today, investors learned that Talkspace is also looking to bring its therapy to the public, via a special purpose acquisition company. Although the news has yet to move Hudson Executive and HEC stock, investors should certainly pay close attention.
With that in mind, here is what you should know about HEC stock and a Talkspace SPAC merger:
- Hudson Executive initially came public in June 2020.
- At the time, it raised $360 million by offering 36 million units at $10 each.
- Backed by Hudson Executive Capital, the blank-check company said it wanted to focus on acquisition targets in fintech or healthcare.
- Investors should note that Douglas Bergeron and Douglas Braunstein are behind HEC stock.
- Considering this, it makes sense that Hudson plans to launch a Talkspace SPAC merger.
- According to the announcement, the deal is worth $1.4 billion.
- The deal also includes $300 million in private investments.
- Participating firms include Woodline Partners, Deerfield and Jennison Associates.
- As a result of the Talkspace SPAC merger, the therapy provider will have $250 million to focus on growing its business.
- Importantly, Talkspace has already been growing its business.
- At the time the deal was announced, Talkspace reported 46,000 active members.
- Once the merger closes, Talkspace will trade on the Nasdaq Exchange.
- The new ticker symbol will be TALK.
HEC Stock and the Talkspace SPAC Merger
So why should investors pay any attention to the Talkspace SPAC merger? And what else is there to know about HEC stock here?
Well, the very nature of Talkspace makes this deal promising. Essentially, the company connects patients with licensed therapists from the comfort of their homes. This means that customers can talk and text with therapists to receive mental health treatment.
How exactly does it work? As Talkspace advertises, interested customers simply fill out a brief online assessment, choose from a list of available therapists and begin the counseling process. Perks of the online and mobile model include 24/7 access, no commutes, lower costs and the ability to swap out appointment times and therapists. In a normal world, just the time saved without commutes should be enough to grab investor attention. In a world with Covid-19, so much more about the Talkspace SPAC merger stands out.
Now, telemedicine is an accelerating trend. So is virtual therapy. And with the stresses, uncertainty and traumas of the pandemic, Talkspace is seeing its business blossom. In fact, licensed therapist Liz Kelly told 10News that more customers than ever are seeking therapy for the first time. Although the circumstances are dreadful, they are having positive impacts on online therapy providers.
Keep HEC stock and the Talkspace SPAC merger on your radar. Even with the rollout of Covid-19 vaccines, Talkspace satisfies a growing customer need.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.