UK-based digital doctor service Babylon is considering going public via a merger with a Nashville-based ‘special purpose acquisition company’ (SPAC) called Alkuri, which was established by former Groupon executive, according to Bloomberg.
SPAC mergers, where a business is combined with a publicly-listed cash shell, have become increasingly popular in recent months and if Babylon was to merge with Alkuri the business could be valued at between $3 billion and $4 billion according to confidential sources quoted in the report.
Alkuri listed in February of this year and states that it is focused on “next-generation technology businesses led by visionary founders and teams leveraging data and artificial intelligence in the areas of consumer internet and marketplaces, healthtech, fintech and mobility”.
Babylon was founded in 2013 by Ali Parsa, formerly chief executive of Circle Health.
In 2019 the business received a cash injection of $550 million led by Saudi Arabia’s Public Investment Fund, which valued the business at approximately $2 billion.
In an interview earlier this year Parsa said he expected company sales to reach around $300 million in 2021 and that there was pressure on the business to explore the public markets given they are “flying right now”.
Date published: April 15, 2021