A deal could be announced as early as this week, said the people, who asked not to be identified because the information is private. Social Capital III, backed by venture capitalist Chamath Palihapitiya and longtime investor Ian Osborne, raised $ 720 million in an initial public offering in April.
Negotiations are ongoing and could be further delayed or collapse, people said. Representatives for Clover Health and Social Capital III declined to comment.
Clover Health raised around $ 500 million in a round led by existing investor Greenoaks Capital in January 2019, TechCrunchreported at that time. The startup offers Medicare Advantage plans in 34 counties in seven U.S. states for 57,000 members, according to apress release in July. The company plans to expand coverage to 74 more counties.
Social Capital, the partnership between Palihapitiya and Osborne, created its first special purpose acquisition company in 2017. It is increasing its offerings amid the rise in popularity of investment vehicles. PSPCs provide a faster route for companies looking to get a listing without the review or risks of an initial public offering.
The partnershipis looking to raise at least $ 2 billion for three new blank check companies, according to documents filed last month that confirmed a Bloomberg News report.
Social Capital Hedosophia Holdings Corp. II, another blank check company in the partnership,agreed to merge with Opendoor real estate technology last month. Social Capital’s first SPAC merged with billionaire Richard Branson’s space company to form Virgin Galactic Holdings Inc.