Alkuri Global Acquisition in an 8-K filing today included an analyst presentation highlighting its pending merger with Babylon, a digital healthcare company.
The transaction reflects an initial pro forma equity value of approximately $4.2 billion and enterprise value of approximately $3.6 billion.
The transaction is expected to deliver up to $575 million of gross proceeds, including up to $345 million of cash held in Alkuri Global’s trust account (assuming no redemptions). The combination is further supported by a $230 million PIPE funded over 85 percent from new, external institutional investors including AMF Pensions, Sectoral Asset Management and Swedbank Robur with strategic investor Palantir. There is additional participation from Ali Parsa, Alkuri Sponsor and existing Babylon investors Kinnevik and VNV.
Babylon previously acquired an option to purchase Higi, a consumer health engagement company, and intends to acquire the remaining Higi equity stake it does not already own. The major investors in Higi, including 7wire Ventures, Flare Capital Partners and William Wrigley, Jr., have agreed to accept shares in lieu of a portion of cash consideration if Babylon exercises its option. This agreement is expected to reduce Babylon’s cash needs by approximately $40 million.
Babylon is expected to have approximately $540 million net cash on its balance sheet following the transaction, which will be used to pursue organic growth strategies as well as acquisitions. Read more.