Ultrasound-on-chip medtech startup to go public via SPAC merger
The company, which makes the only ultrasound transducer that can perform “whole-body imaging” with a single handheld probe using semiconductor technology, says the transaction is expected to drive further adoption of its solutions and accelerate its future pipeline of innovative technologies. Upon closing of the merger agreement, the combined company’s Class A common stock is expected to be traded on the New York Stock Exchange (NYSE) under the symbol “BFLY.”
The company’s Butterfly iQ point-of-care ultrasound (POCUS) product is designed to address the limitations of currently available traditional cart-based and POCUS technologies. The former are accessible only to highly specialized technicians and are located predominantly in hospitals, imaging centers, and physicians’ offices, while the latter are limited by 60 year-old technology and significant costs that hinder widespread use.
Connected to a mobile phone or tablet, Butterfly iQ is powered by a proprietary Ultrasound-on-Chip technology and harnesses the advantages of AI to deliver advanced imaging that, says the company, is easy to use, improves patient outcomes, and lowers cost of care. Butterfly iQ was launched commercially in 2018, and in 2020, the company launched the Butterfly iQ+ with additional features and improved performance.
Since introduction, says the company, more than 30,000 Butterfly iQ and iQ+ devices have shipped to medical professionals globally. The company has sold to or has agreements in place with the majority of the largest 100 hospitals in the United States, and is commercially available in more than 20 countries including the United States, Canada, greater Europe and Australia.
“The success of Butterfly is fueled by a clear mission, superior technology made simple, a passionate community of healthcare practitioners and an immensely talented team,” says Laurent Faracci, Chief Executive Officer of Butterfly. “We believe the combination with such a premier healthcare partner as Longview Acquisition Corp. will amplify and accelerate the adoption of Butterfly iQ around the world. This partnership will enable us to bring more Butterfly innovative solutions to market faster, helping us improve patient outcomes and the way healthcare is delivered.”
Larry Robbins, founder of Glenview and Chairman of Longview adds, “Butterfly is the epitome of value-based care: better health, lower cost, and patient centric. We are proud that our Butterfly investment will help accelerate efforts to provide the medical community with tools to diagnose more clearly and enable practitioners to be more effective, more efficient and more confident.”
The Pro Forma enterprise value of the merger is $1.5 billion, with the combined company expected to have an estimated $584 million in cash after closing. The business combination is expected to be completed by the end of the first quarter of 2021.
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