MSP Recovery’s SPAC Deal to Value Combined Firm at $32.6 Billion

, Bloomberg

MSP Recovery, specializing in securing Medicare and Medicaid secondary payments, has agreed to go public through a merger with a blank-check firm giving the combined company an enterprise value of $32.6 billion, according to people with knowledge of the matter.

The agreement with Lionheart Acquisition Corp. II could be announced as soon as Monday, said the people, who asked not to be identified discussing private information.

Lionheart, led by Chief Executive Officer Ophir Sternberg, raised $230 million in an August initial public offering.

The combined company is expected to trade on the Nasdaq under the symbol MSPR, the people said.

Bloomberg News reported last week that MSP and Lionheart were in talks.

Backers of Coral Gables, Florida-based MSP include Virage Capital Management LP. MSP’s existing senior executive team, led by Chief Executive Officer John H. Ruiz, will continue to manage the company, the people said.

The deal provides for issuing about 1 billion warrants to former Lionheart stockholders who don’t redeem their shares of its common stock in connection with the merger, the people said. MSP’s founders have agreed to sell an equivalent number of their shares back to the company so that provision won’t dilute the stock’s value, the people said.

MSP runs a platform that helps with claims recoveries and earns its fees only after recovering claims, according to its website. The company, which developed proprietary software, touts its expertise with the Medicare Secondary Payer Act.

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