Digital healthcare group ETAO International Group said on Friday it will go public through a merger with a blank-check firm, valuing it at about $2.5 billion.

The deal with Mountain Crest Acquisition Corp III will provide the combined company with up to $304 million in gross proceeds, including a $250 million private investment.

ETAO is involved in providing a range of healthcare services, including hospital and primary care, health insurance, pharmacy and telemedicine.

Funds from the deal will be used to improve healthcare delivery amenities in its clinics and hospitals and also towards its internet-based medical services, ETAO said.

The deal is expected to close in the summer, following which the combined company will list on the New York Stock Exchange under the trading symbol "ETAO."