Pharmaceutical company EQRx and CM Life Sciences III today announced a definitive business combination agreement that would provide up to $1.8 billion in cash proceeds to EQRx.
Financing includes approximately $552 million of cash held in the SPAC’s trust (assuming no redemptions), and a fully committed PIPE of $1.2 billion from healthcare investors led by SB Northstar, a fund managed by SB Management (a subsidiary of SoftBank Group) and including funds advised by Casdin Capital and Corvex Management. Other participants in the PIPE include Fidelity Management & Research, Franklin Templeton, Invus, Rock Springs Capital, Bain Capital Life Sciences, BVF Partners, Boxer Capital, Avidity Partners, Andreessen Horowitz, Mubadala Investment Company and its asset management subsidiary, Mubadala Capital, Verily and strategic partners spanning the healthcare ecosystem.
The transaction values EQRx at a pre-transaction enterprise value of $3.65 billion with an additional $500 million potential performance based earnout. \
If approved, the deal is expected to close in the fourth quarter. Read more.
