Digital health firm Babylon Holdings Ltd. is reportedly teetering on the edge of collapse after its merger plans with another healthcare company fell through, PYMNTS reports.
The United Kingdom-based company, known for its app that connects patients with doctors, has filed a notice of intention to appoint administrators in the U.K. High Court, indicating a potential cash shortage, Bloomberg reported.
Founded in 2013 by entrepreneur Ali Parsa, the company offers online consultations with physicians to private patients and large corporations. Its GP at hand app has gained popularity in the U.K., with around 100,000 patients utilizing its services to access National Health Service (NHS) doctors remotely.
The company went public in 2021 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.Lss than a year later, Babylon executives were mulling potential take-private deals.
A merger with healthcare compnay MindMaze was announced in June, but the deal collapsed last month.
By the first week of August, the company had shutted US operations and began laying off employees.
The pitch from the company was that artificial intelligence software could make primary care more affordable and accessible, but it was far from profitability. In 2022, Babylon reported a net loss of $369.8 million on $1.1 billion in revenue. Read more.
