Longview Capital (NYSE:LGVW) stock is on the move Tuesday after announcing plans for a special purpose acquisition company (SPAC) merger with Butterfly Network.
Here’s what investors need to know about LGVW’s plans to merge with Butterfly Network.
- The SPAC merger will have Butterfly Network going public by becoming a wholly-owned subsidiary of Longview Capital.
- Following this, Longview Capital will change its name to Butterfly Network.
- This will also have shares of LGVW stock changing to the BFLY stock ticker.
- The deal implies an enterprise value of approximately $1.5 billion for the Butterfly Network.
- It’s also worth noting that the SPAC merger will give Butterfly Network $589 million in gross proceeds.
- That includes $414 million in cash held in trust by Longview Capital.
- The remaining $175 million comes from a private investment in public equity (PIPE).
- This will result in the combined company having $584 million in cash on its balance sheet at closing.
- Butterfly Network and Longview Capital are expecting the deal to close in the first quarter of 2021.
- Butterfly Network is a medical device company that focuses on the creation of ultrasound equipment.
- The company’s leading product is the Butterfly iQ, which is the first “handheld, single-probe whole-body ultrasound system.”
- This device is available in the U.S., Canada, the U.K., and several other European countries.
- Butterfly Network was founded in 2011 by Dr. Jonathan Rothberg.
- When the SPAC merger is complete, Rothberg will act as the chairman of the combined company’s Board of Directors.
- Current Butterfly Network CEO Laurent Faracci will continue to lead the company once the deal is complete.
LGVW stock was up 20.4% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.