Another week, another reverse merger. Private companies going public through a special purpose acquisition company (SPAC) seem to be a dime a dozen in 2020. Primary Care operator Cano Health, LLC announced it was going public last week in a deal valued at $4.4 billion, and Clover Health struck a $3.7 billion reverse merger with Social Capital Hedosophia Holdings Corp. III (NYSE: IPOC). This time, the SPAC is Longview Acquisition Corp. (NYSE: LGVW), which is sponsored by Glenview Capital Management, LLC. The company going public is Butterfly Network, Inc., which created the world’s first handheld, single-probe whole-body ultrasound system, Butterfly iQ, to make ultrasound technology more universally accessible and affordable. Butterfly iQ is commercially available in more than 20 countries including the United States, Canada, greater Europe and Australia. The deal is valued at $1.5 billion.
Butterfly iQ was launched commercially in 2018, and in 2020, the company launched the Butterfly iQ+ platform with additional features and improved performance. More than 30,000 Butterfly iQ and iQ+ devices have shipped to medical professionals globally. Butterfly Network has raised more than $400 million from investors, including Baillie Gifford, The Bill and Melinda Gates Foundation and Fosun Industrial Co., Limited.
Following the close of the deal, the merged company will be traded on the NYSE under the symbol BFLY. The transaction is supported by a $175 million PIPE at $10.00 per share, led by Eldridge, Fidelity Management & Research Company LLC, Glenview, Ridgeback, Tenet Healthcare Corporation, UPMC Enterprises, the innovation, commercialization and venture capital arm of University of Pittsburgh Medical Center, and Wellington Management.
The transaction is expected to deliver up to $589 million of gross proceeds, including up to $414 million of cash held in Longview’s trust account. The merged company is projected to have approximately $584 million in cash.