SPAC $ 5 Billion Deal


Ella Jones, Deputy Editor In Chief

Date: 12.04.2021

LumiraDx Ltd., a diagnostic company that produces Covid-19 tests, is going public through a reverse merger with a blank-check company.

The U.K.-based firm will combine with CA Healthcare Acquisition Corp. in a deal that values LumiraDx’s equity at $5 billion, the companies said in a statement.

While there is no equity placement attached to the transaction, LumiraDx has secured a $300 million loan from BioPharma Credit Plc and an additional $100 million asset-based revolving credit facility from Capital One Financial Corp., according to the statement.

At $5 billion, LumiraDx’s deal is the largest of the past year by a health-care company with a special purpose acquisition company, or SPAC, according to data compiled by Bloomberg.

LumiraDx’s machines, roughly the size of a brick, are designed to process about 30 different tests, including for Covid-19, in as little as 12 minutes. The company is also developing a smaller device that will be available for home use.

LumiraDx estimates that it will have revenue of $600 million to $1 billion this year, compared with $139 million in 2020, according to the statement. Its clients include CVS Health Corp., the U.K.’s National Health Service and the Bill & Melinda Gates Foundation.

Since its founding, LumiraDx has raised $700 million from backers including Morningside Ventures, U.S. Boston Capital Corp. and Petrichor Healthcare Capital Management, as well as from the Gates Foundation and other investors, according to the statement.

by Ella Jones | Linkedin

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