Owlet Baby Care, a US-based baby monitor producer backed by e-commerce firm Amazon, yesterday agreed to a reverse merger with special purpose acquisition company Sandbridge Acquisition Corp.
The transaction includes a $130m investment raised in a private placement from Fidelity, Janus Henderson Group, Neuberger Berman, OrbiMed Advisors and private funds affiliated with Pimco and Wasatch Global Investors.
Combined with $230m already held in trust by Sandbridge, the combined business’ post-transaction valuation is expected to reach nearly $1.39bn.
Owlet produces a smart sock and camera for parents to track their child’s heart rate, oxygen levels and sleep time. A related software platform analyses the biometric information.
The company’s existing shareholders intend to roll “nearly 100%” of their equity into the combined business, Owlet said in its announcement without offering further clarification.
Owlet most recently raised $24m in a series B round in 2018 that was led by Trilogy Equity Partners and also included Eclipse Ventures, Broadway Angels, Enfield Ventures and Pelion Venture Partners.
Amazon participated in a $15m round in 2016, investing through its Alexa Fund. The corporate was joined by Trilogy, Broadway Angels, Eclipse, Eniac Ventures, RTP-HC and Capital Integral. The figure included a $1.5m grant from the US National Institutes of Health.
Formation 8 led a $7m series A round in 2015 with commitments from Carpe Diem VC, FF Venture Capital, Eniac, Azimuth Ventures, Life Sciences Angel Network, Peak Ventures and Brand Project. Owlet’s shareholders also include Toms Social Entrepreneurship Fund.
