Babylon Health is finalizing its decision to go private by accepting an offer for an alliance with Mindmaze, a digital health company focused on brain health.
The offer comes from London-based investment manager Albacore Capital Group, which secured a term loan facility for Babylon Health due in November 2021. The transaction will not result in a payment to Babylon’s shareholders, which is a condition of Albacore’s credit facility. Regulatory filings with the Securities and Exchange Commission. The initial agreement between Albacore and Babylon released $200 million to Babylon through 2026.
The main operating subsidiaries of Babylon will be transferred to Mindmaze. Albacore Capital Group funded a $125 million investment in Mindmaze in October 2021 to accelerate the commercialization and expansion of the digital neurotherapeutics platform, a month before securing a loan for Babylon.
The transaction with Mindmaze is expected to close next month. Babylon will cease trading on the New York Stock Exchange pending regulatory and other approvals. The deal provides for a new capital structure and reduces debt, according to a statement from a Babylon spokesperson. The current business operation will receive immediate physical funding, the statement said.
According to a news release, the combined company will focus on improving patient engagement and access to high-quality customized healthcare by tackling a wide range of chronic conditions, including neurological conditions.
Albacore declined to comment further. Mindmaze did not respond to multiple requests for comment.
babylonAlcuri, an AI-enabled virtual diagnosis and medical appointment company founded in London in 2013, went public in October 2021 through a special purpose acquisition corporation merger with Global Acquisition Corp. At the time, a Babylon spokesman said the transaction was expected to gross company proceeds of approximately $575 million. give it $4.2 billion Evaluation.
SPACs streamline the process of stock market launch, acquisition of companies, taking them public and raising funds through initial public offerings. The SPAC will have to spend the money raised within two years or return it to the investors.
Babylon opened at $250.25 per share and the stock climbed to a high of $292.75 per share on October 27, 2021. On Friday afternoon, its stock traded at about 48 cents per share, down 22% from its opening day price of 61 cents per share. ,
Babylon CEO Dr. Ali Parsa wrote in October 2021 that the company’s revenue has increased by 394% from 2020 to 2021 and 472% in the first half of 2021. Parsa had previously predicted that the company would be profitable in the near term. “this could be the end  or the beginning of , It doesn’t matter,” he said. JP Morgan Healthcare Conference in San Francisco In January. “We’ll break even.”