The London-based well being expertise startup Babylon Well being goes via a merger with a clean examine firm valued at 2.98 billion

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SPACs (Special Purpose Acquisition Companies) have experienced a boom in Europe in recent years. It’s one of the easiest and hottest ways for young companies to go public quickly and raise some cash to grow.

According to JP Morgan report, half of all new IPOs by volume since January 2019 have been SPACs.

Babylon goes public

In this context, London-based healthcare technology startup Babylon announced its plan to merge with Alkuri Global Acquisition Corp. (NASDAQ: KURI) (“Alkuri Global”), a special-purpose acquisition company, to go public.

Rich Williams, CEO of Alkuri Global. “When we founded Alkuri, we wanted to identify promising, disruptive companies with visionary founders and strong teams. Babylon is all of that, and we look forward to working with them on their truly world-changing mission. “

The transaction reflects an initial pro forma share value of approximately $ 4.2 billion (approximately £ 2.98 billion). The transaction is expected to close in the second half of 2021. Babylon is listed on the Nasdaq under the ticker “BBLN”.

Dr. Ali Parsa, Founder and CEO of Babylon, comments, “Becoming a public company is just one more step on our way. We are at the very beginning of our work to rethink our sector, to make it digital and preventive and to shift the focus from health care to real health care. “

Babylon Health will use the funding to expand its services to both existing and new customers.

What is SPAC?

SPAC is an alternative way for companies to go public that differs from a traditional IPO in terms of process, speed, disclosure, and regulatory requirements.

Digital healthcare provider

Founded in 2013 by Ali Parsa, Babylon is a digital healthcare provider that combines AI technology with human medical expertise.

Says Parsa, “We founded Babylon on the fundamental belief that it is possible to make quality health care accessible and affordable for everyone in the world by combining the latest technology with the best medical expertise. Every year since our foundation, we have achieved one of the highest growth rates with consistently high clinical results and patient satisfaction. ”

The UK company offers full access to health care, including personalized health assessments, treatment advice and face-to-face appointments with a doctor around the clock.

Two primary channels

Currently, the company helps patients through two main channels,

Babylon 360 – His digital first value-based care service

Babylon Cloud Services – It is a suite of digital self-care tools that enables patients and clinicians to gain insight and information either directly through Babylon or through Babylon’s list of high-ranking partners.

The company achieved roughly 5x annual revenue growth in 2020 and is expected to grow 4x in 2021.

One patient every five seconds

In 2020, the company helped a patient in approximately 6 million patient interactions every five seconds. The company’s service covers over 24 million people in the United States, Canada, Europe, Africa and 13 countries in Asia.

The deal with Alkuri Global Acquisition Corp will bring Babylon gross proceeds of up to $ 575 million (approximately £ 407 million), including a private placement of US $ 230 million (approximately £ 163 million) from investors such as AMF Pensionsförsäkring and Swedbank Robur with the strategic investor Palantir.

The transaction, which was unanimously approved by the boards of Babylon and Alkuri Global, is expected to close in the second half of 2021, subject to the approval of Alkuri Global shareholders and other customary closing conditions, including any applicable regulatory approvals.

To date, the company has raised € 877 million (approximately £ 754 million) in funding from investors.