- GeneralSPAC
- June 6, 2021
- 5 minutes read
SPAC: UK’s Babylon Health To Go Public In $4.2B Deal
Another tech startup from the UK has agreed to go public in the US by merging with a special-purpose acquisition…
Another tech startup from the UK has agreed to go public in the US by merging with a special-purpose acquisition company (SPAC). This time, it’s Babylon Health, a telehealth app providing access to doctors and medical services.
- Babylon Health has agreed to merge with Alkuri Global Acquisition Corp. (NASDAQ: KURI) and become a public company. The merger terms value Babylon Health at $4.2bn.
- From the merger, Babylon will get $345mn of cash held in trust by Alkuri, then a $230mn PIPE round adding it up to $575mn. The PIPE round includes a strategic investor – data analytics company Palantir.
- From its investor presentation, it’s indicated that Babylon Health made $79mn in revenue in 2020. In tune with the excessive projections we’ve become accustomed to in SPAC deals, the company then projects to have $710mn in annual sales by 2022.
- Babylon makes money both from recurring subscriptions to its telehealth app as well as one-off fees for doctor consultations. On that end, it’s a solid business model.
- Major shareholders of Babylon Health going into its SPAC deal include CEO Ali Parsa (26%), investment firm Kinnevik (13%), and the Saudi Public Investment Fund (PIF).
- Babylon’s merger is expected to be completed in the second half of 2021.
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