Special purpose acquisition company, GigCapital2 Inc, entered into a business combination agreement with digital health services platform, UpHealth Holdings, and Cloudbreak Health a telemedicine enabler for healthcare providers. The combined digital healthcare company will be named UpHealth.

The combined entity will focus on integrated care management, global telehealth, digital pharmacy, and tech-enabled behavioral health solutions. The revenue and EBITDA of the new entity are projected to be around USD 190 million and USD 24 million, respectively, in 2021. The valuation of the combined entity is estimated to be USD 1.35 billion.

Following the completion of the merger, UpHealth will deliver digital healthcare in over 10 countries and the combined entity will be listed on the NYSE.

GigCapital2 is a special purpose acquisition company that uses proceeds from an initial public offering to acquire private companies, giving private companies an alternative for initial public offerings. GigCapital2 plans to raise $160 million in the form of private investment in public equity to help finance the deal.