Biotech Roivant to go public via $7 3 bln SPAC deal reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
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Roivant Sciences, an unusual holding company with roughly a dozen biotech subsidiaries, will go public through a merger with a blank-check entity in a deal that values the company at $7.3 billion.
Roivant will get $611 million in cash by merging with Montes Archimedes Acquisition Corp., a special purpose acquisition company, or SPAC, formed by Patient Square Capital. That figure includes $411 million already in a Montes Archimedes Trust and a commitment by Patient Square and other investors to buy $200 million in Roivant stock at $10 apiece.
The agreement will leave Roivant, whose subsidiaries have had both high-profile successes as well as failures, with $2.3 billion in cash upon going public. The deal, one of the larger SPAC mergers in biotech, comes amid signs the boom in such deals may be waning. Returns are down, while many SPACs are in competition for takeover targets. Federal oversight, meanwhile, appears to be increasing.
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A drug discovery company with ownership stakes in several public and private biopharmaceutical companies is going public with a SPAC deal announced Monday morning.
The SPAC Deal: Roviant Sciences announced a SPAC deal with
Montes Archimedes Acquisition Corp (NASDAQ: MAAC). The deal values the company at an enterprise value of $5 billion.
A $200 million PIPE is backed by companies including Softbank Group Corp., Fidelity Management & Research Co., Sumitomo Dainippon Pharma and
Palantir Technologies Inc (NYSE: PLTR).
Shares of the new company will trade as ROIV on the Nasdaq with an anticipated closing date in the third quarter.
A percentage of current ownership shares will have a three-year lock-up and earn-outs based on $15 and $20 price points. Current Montes Archimedes acquisition shareholders will own 5.6% of the company after the merger.
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Roivant Sciences said on Monday it would go public through a merger with blank-check firm Montes Archimedes Acquisition Corp, backed by former KKR & Co dealmaker Jim Momtazee, in a deal that values the biotech company at $7.3 billion.
The deal is expected to deliver up to $611 million of gross proceeds to fund Roivant’s discovery and development programs.
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Investors including Fidelity Management & Research and SB Management, a subsidiary of SoftBank Group Corp have agreed to invest $200 million in the deal.