Drug development company Valo Health and Khosla Ventures Acquisition today announced that they have entered into a definitive merger agreement that would give the combined enterprise a market value of $2.8 billion.
The new company is expected to have a pro forma cash balance of approximately $750 million before deducting transaction expenses, including existing Valo cash of approximately $250 million, approximately $333 million of net cash held in KVAC’s trust, and a $168.5 million PIPE at $10 per share. Institutional and strategic investors or affiliates and existing Valo shareholders that have committed to participate in the PIPE include a leading integrated healthcare delivery network, Khosla Ventures, NG MGG Strategic, Caz Investments, and returning investors Koch Disruptive Technologies, Flagship Pioneering, Public Sector Pension Investment Board, Invus, State of Michigan Retirement Systems, HBM Healthcare Investments and Longevity Vision Fund.
The deal is expecte dto close in the third quarter, pending regulatory and shareholder approvals. Read more.
