(Bloomberg) -- Custom Health Inc., a digital healthcare firm, is going public in a merger with a blank-check company at a pre-money equity valuation of $185 million.

The transaction with Berenson Acquisition Corp. I will provide the firm with the $11.1 million in trust that the special-purpose acquisition company holds, assuming no redemptions, as well as potential additional financing, according to a person familiar with the matter.

Proceeds from the deal will be used to fuel organic growth and allow Custom Health to continue its add-on acquisition strategy, the person said. Custom Health and Berenson declined to comment.

Berenson is a SPAC led by Berenson & Co LLC co-founder Jeffrey Berenson and the blank check’s chief executive Mohammed Ansari. The blank check raised roughly $275 million in an initial public offering in September 2021 with the intention of merging with a software and technology-enabled services firm. The SPAC extended a liquidation deadline until September 2024, but has seen more than 95% of investors redeem their shares for the cash back as its deal search dragged on.

Custom Health uses software to help fully automate owned and network pharmacies while providing at-home medication management solutions and real-time clinical oversight. The firm expects to grow by acquiring pharmacies which can enable it to provide medications and technology in a single offering to benefit patients and payers.

The deal is expected to close in the second quarter of 2024 and was approved by the SPAC and Custom Health’s boards.

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