Mergers in Reverse, SPACs on the Rise!

Stop us if you’ve heard this one before. Company A is the latest medtech firm to go public through a SPAC deal. The scenario is becoming all too common these days as more companies are pursuing this option.

On Thursday, Heartflow, a cardiovascular precision care specialist, said it was going public via a merger with Longview Acquisition Corp., a SPAC company sponsored by affiliates of Glenview Capital Management LLC.

The merger has an enterprise value of $2.4 billion and would give the combined company $400 million for capital growth after closing.

Redwood City, CA-based HeartFlow was launched 11 years ago. The company’s core product, the HeartFlow FFRCT Analysis, is a non-invasive cardiac test for stable symptomatic patients with coronary artery disease (CAD). With the HeartFlow FFRCT Analysis, the company currently targets a $10 billion total addressable market opportunity that it plans to expand to more than $50 billion through the introduction of new products, new customer site additions and increased utilization of HeartFlow in existing healthcare systems over the coming years.

“We believe that our non-invasive, artificial intelligence-enabled, cloud-based enterprise software solution can transform cardiovascular care with risk assessment, diagnosis planning and treatment management,” said John H. Stevens, MD, President, CEO and Co-Founder of HeartFlow. “Importantly, we have brought together a talented group of individuals with deep expertise in technology, cardiovascular medicine, and the business of healthcare and a deep commitment to patients to deliver on this vision. I’m incredibly proud of the HeartFlow team in reaching this important milestone.”

Less than a week ago, MD+DI reported on Hyperfine combining with Liminal Sciences, and HealthCor Catalio Acquisition Corp in a SPAC valued at $580 million.

The deal followed  last month’s announcement of Pear Therapeutics – a company known for its prescription digital therapeutics went through a SPAC with Thimble Point Acquisition Corp. in June.

The combined business is set to have an equity value of 1.6 billion with an expected $400 million in gross proceeds.