An Introduction to the Compute Health Acquisition Corp. SPAC (NYSE: CPUH-UN)
One of the more exciting recent SPAC reveals on the open markets has to be the CPUH SPAC. Entering on the NYSE scene with a whopping $750 million IPO is definetly something to take note of.
75 million units at $10 pricing may be nothing out of the ordinary but Mr Omar Ishrak, the Chairman of Intel (NASDAQ: INTC) sitting at the helm of this pretty substantially valued company leaves a lot of questions that demand to be answered.
With trading beginning on February 5th 2021, no choice of shares but the units are hot off the oven rack. One share of Class A stock and a quarter warrant are always a good investment, especially in the early days.
But where is this $750 million going to call home? Well, it is no secret that both the Technology and Medical sectors saw a pretty sizeable boom across the previous financial year.
In relation to some of the other more hyper-inflated sectors, many are claiming that these industries are set to keep rising. With the Compute Health Acquisition Corp. eagerly looking in on these sectors. We’ll need to take a closer look and try to identify what exactly it is that they are looking for!
Sponsor Background Analysis
Although the official sponsor may be Compute Health Sponsor LLC. It is clear to see the two primary sponsors of the CPUH SPAC will the involvement of Mr Omar Ishrak (and the Upper Management selection).
Although Mr Ishrak is currently the Chairman of the Board at Intel. He previously served as Chairman in addition to CEO at Medtronic (NYSE: MDT).
These are the ideal positions to begin our Sponsor analysis.
Furthermore, it should also be noted that the involvement of Goldman Sachs as the sole book-running manager is a clear sign of quality and a positive forecast.
Mr Omar Ishrak
Serving as the Chairman of the Board of Intel (NASDAQ: INTC) since the start of 2020 and previously Chairman of the Board and CEO of Medtronic (NYSE: MDT) from 2011 until 2020. Mr Ishrak is definitely the rock-star player of the CPUH SPAC.
The clear upward spikes across Mr Ishraks tenure needs no further explanation, considering the level of control and power he had within the company. And what he chose to do with it.
Prior to his work at Medtronic, he served as the President and CEO of General Electrics Healthcare Systems (NYSE: GE). His experience in both the medical field and in the leadership capacity is arguably the greatest on the planet.
In terms of networking, connections and management. There simply is no better candidate for the job!
Having traded on the public market since the 1970s, the share price of Medtronic has done nothing but grow to the whopping $120 that it currently trades on the NYSE.
Seasoned investors and financiers with a particular emphasis on the medical sector should be no stranger to the American origins story of the Irish-based company.
Operating in across 140 countries with over 100,000 people employed. The CPUH SPAC is playing with the big boys.
Besides the countless medical fields that Medtronics has influence within, the primary business units involve:
- CRDM – Cardiac rhythm disease management
- Spinal & Musculoskeletal therapies
- Surgical technologies
- Portable ventilators
Dr Jean Nehmé
The Co-CEO of the CPUH SPAC, Dr Nehmé’s experience in the medical sector is extremely impressive. His hands on understanding with the field began in 2011 when he co-founded Digital Surgery.
This personal experience as a medical professional and this personal involvement with the beginning of his own company. Thereafter, assisting it through an acquisition. Are all valuable skills that are extremely applicable in the context of a SPAC and Acquisition deal.
The other Co-CEO of the CPUH SPAC is certainly renown across the financial sector. The Managing Partner of Ophir Holdings, a private investment company. The sheer amount of LLC’s associated with the company indicates Mr Fink has prior experience with the SPAC process.
Although Mr Fink may lack particular experience in relation to the healthcare sector. His experience in the financial field from that of an Investor as well as his multiple positions of leadership across his career are extremely relevant.
It is important to note his involvement with the 8VC, Silicon Valley Venture Capital firm as this would be of key important when identifying a potential target and walking it through the public markets.
Market Criteria & Targeted Sector
We intend to focus on opportunities that are emerging at the intersection of computation and healthcareCPUH SPAC SEC Filings
This integration of the technology and medical fields is a very exciting prospect both for the human race and from the point of view of a budding company.
There has been much talk about the emerging trends in the genomics industry in particular. Many disruptive financiers are throwing their support behind the new movement and the $750 million dollar blank check further compounds these predictions.
A shortlist of possible avenues for investment include but are not limited to:
- Data access
- Artificial intelligence
- AI Algorithms
- Computational power feed
Don’t worry, we aren’t 100% certain as to what the kind of revelations can come from these fields but they certainly sound exciting. However, particular mention was thrown towards the following fields within the medical and tech industry:
- Mobile & Cloud computing
- Primary & Secondary care services
- Algorithms in conjunction with Ultrasound
- Computational Intelligence within Operating rooms
- 5G and low latency connectivity
Considering the vast majority of Tech & Medical related companies (and SPACs) are choosing to focus on the consumer and service-based aspect of the market. The CPUH SPAC is certainly entering the revolutionary albeit beneficial side of things.
We believe that mature players within healthcare are only catching on to the possibilities offered by computational progress.CPUH SPAC Prospectus
They counter this by stating that the smaller and more nimble companies lack the “capabilities, financing and velocity” required and that the CPUH SPAC fulfils these criteria exactly.
Deal Flow Analysis
From its humble beginnings, Medtronic has expanded to become one of the most powerful companies in the healthcare and tech sector. The company has done nothing but grow and this can be seen by its ability to manage an incredible $122.2 Billion worth of assets.
A close look at the portfolio of this multinational life sciences company reveals an extremely wide range of investments (67), acquisitions and exits (20). Most recently having raised an incredible $367 million in post-IPO equity.
It is clear to see that the sponsorship of such a well established and high-performing company in the health and technology sector will be truly beneficial to the CPUH SPAC. Great connections, influence and guidance are a given.
However, the lack of passion, motivation and individual involvement may not be a tangible factor but can be considered cause for concern. Definetly something to keep in mind, especially when getting involved with these MNC’s.
Want to take a deeper look? Check out Medtronics Investment profile
The CPUH SPAC – In Summary…
The company still has not started trading separate stock. In such early days, it is near impossible to tell what people are thinking and what to expect. However, this thorough analysis shows that the CPUH SPAC seems to have an extremely bright future ahead of it.
Founded and operated by an upper management with an incredible pedigree within both the medicare, tech and finance sectors. Although all eyes may be on Mr Ishrak, his confidence should remain unwavering.
Mainly due to his close relations and ties with his previous company, Medtronic. A healthcare giant that maintains a personal connection with the Upper management as well as extensive experience as a VC firm.
Furthermore, the involvement of Goldman Sachs as the sole book-running manager is a mark of such supreme confidence that even the $750 million IPO does not seem too ambitious.
The fact that the market criteria exist in such an interesting and exciting emergent sector that has been forecast to grow indefinitely.
The Compute Health Acquisition Corp. SPAC seems like one of the safest and healthiest buys out there.