Rockley Photonics, the US-based silicon photonic chipmaker backed by corporates Applied Materials and Hengtong Optic-Electric, agreed a reverse merger with special purpose acquisition company SC Health Corp on Friday.
The merged company will acquire the listing on the New York Stock Exchange taken by SC Health through a $150m initial public offering in July 2019. The deal gives it a pro forma enterprise valuation of $1.2bn.
Medical device maker Medtronic is joining investors including Senvest Management and UBS O’Connor to provide $150m for the merged business through a private investment in public equity (PIPE) financing.
Founded in 2013, Rockley has developed photonic chipsets and modules for use in communication systems and sensors. The proceeds from the transaction will fund preparations for the commercial launch of its unique sensing platform.
Semiconductor technology producer Applied Materials’ investment arm, Applied Ventures, joined venture capital firm 5Y Capital and SIG-i Capital, a vehicle sponsored by financial services firm Credit Suisse, in a $65m funding round for Rockley that closed last month, taking its total funding to $290m.
Ahren Innovation Capital had invested an undisclosed amount in Rockley in March 2020, eight months after it secured $52m in series E funding from fibre optic cable provider Hengtong Optic-Electric and 5Y Capital (then Morningside Venture Partners). Kreos Capital and Perscitus were both earlier investors.
Andrew Rickman, founder and chief executive of Rockley, said: “Our partnership with SC Health positions us to accelerate our time-to-market for our compelling health and wellness solutions.
“Our proven sensor technology, world-class partners and a relentless focus on execution will enable Rockley to deliver life-changing benefits to an enormous number of people. We believe that bringing laboratory diagnostics to the wrist will transform patient monitoring, healthcare delivery, and overall consumer health and wellbeing.”
Image courtesy of Rockley Photonics, Ltd.
