Digital health platform Babylon Holdings said it accepted a proposal from AlbaCore Capital and MindMaze Group to take the company private. The company went public via a merger with Alkuri Global Acquisition run by former Groupon executives. The transaction reflected an initial pro forma equity value of approximately $4.2 billion.
The take-private proposal strongly positions Babylon to accelerate its core mission – to make high quality healthcare more accessible and affordable by combining cutting-edge technology with the best medical expertise, Babylon said. In combination with MindMaze, which is engaged in brain technology and digital neurotherapeutic solutions for brain health and recovery, the pro forma business is positioned to address patient and member needs across the continuum-of-care, from healthcare through sick care.
The transaction provides for a new capital structure with a significant reduction of pro forma company debt, resulting in a substantially strengthened and more flexible financial profile. In addition, the transaction will include immediate material funding for current business operations as well as a commitment to fund the combined business, allowing the pro forma company to focus on its strategy of delivering concurrent growth and profitability over the near to mid-term.
The transaction is expected to close in July.
The executive team at Babylon was reportedly considering taking the company private as far back as August 2022, which was less than a year after listing on the Nasdaq through the SPAC merger.
Babylon, founded by its CEO Ali Parsa, was said last summer to be holding preliminary discussions with some investors about how to address a crumbling share price that’s wiped almost $4 billion off its value since its October 2021 listing in New York.
Babylon at the time dismissed those claims as “market gossip.” Read more.
