Butterfly Network, a US-based handheld ultrasound scanner producer backed by diversified conglomerate Fosun, has agreed a reverse merger with special purpose acquisition company Longview Acquisition Corp.
The transaction will value the combined companies at $1.5bn and Butterfly will take the New York Stock Exchange (NYSE) listing secured by Longview in a $360m initial public offering in May this year.
The deal will be boosted by $175m in financing anchored by care providers Tenet Healthcare Corporation and UPMC (through UPMC Enterprises), investment and financial services group Fidelity Management & Research, Eldridge, Glenview Capital Management, Ridgeback Capital and Wellington Management.
Butterfly has created a handheld ultrasound scanner called Butterfly iQ which uses semiconductor technology to deliver a ‘whole-body image’. It launched an updated version of the device earlier this year and has sold more than 30,000 of its systems across the world.
The company was valued at $1.25bn as of a $250m series D round in 2018 featuring Fosun subsidiary Fosun Pharma in addition to Fidelity, Bill and Melinda Gates Foundation, Jamie Dinan and undisclosed existing investors.
Butterfly had revealed $100m in funding from investors including company founder Jonathan Rothberg and Aeris Capital when it emerged from stealth four years earlier. Baillie Gifford is also among its shareholders, it has disclosed.
The merged business is expected to have a total of approximately $584m in cash available once the deal closes. Jonathan Rothberg will be its controlling shareholder while Glenview, an affiliate of Longview, will own a 7.6% stake.
Image courtesy of Butterfly Network, Inc.
