SPAC Deals: DEH Strikes $1.1B Deal with Vicarious Surgical / CHFW to merge with Surrozen

Two healthcare-related SPAC deals (DEH and CHFW) announced this morning for over $1B in total transaction value. Both Vicarious Surgical, a surgical robotics company backed by BDX, and Surrozen, a biotech, are pre-revenue.
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DEH & Vicarious Surgical

D8 Holdings Corp (DEH) agreed to take surgical robotics company, Vicarious Surgical, public at a $1.1B EV valuation. The transaction includes a $115M PIPE backed by some heavy-hitters including:

- Becton Dickinson (BDX), who are existing investors in the company
- Bill Gates
- Khosla Ventures (who have 4 SPACs of their own)
- Innovation Endeavors (Eric Schmidt)
- E15 VC (Philip Liang)

Backing from a large/respected public company like Becton Dickinson and individuals like Bill Gates might do well to alleviate the fears of another highly speculative revenue projection story. The company doesn't expect to generate any material revenue until at least 2024, and won't achieve $1B in revenue until 2027

Source: Investor Presentation

Source: Investor Presentation

That being said, there doesn't appear to be a lock-up tied to the length of these projections, as Altimeter Growth promised with its Grab deal earlier this week. DEH, who was trading sub $10 before the announcement, was trading a bit higher on the news. 

CHFW & Surrozen

Consonance-HFW Acquisition Corp (CHFW) today announced that it is taking Surrozen, a biotech developing drugs to modulate the Wnt pathway, that values the pre-rev company at ~$200M EV. The transaction is supported by a $120M PIPE, led by an unnamed "leading US healthcare-focused fund" and SPAC sponsor Consonance Capital Management. 

Source: Investor Presentation

Source: Investor Presentation

Existing Surrozen shareholders are rolling 100% of their equity. CHFW, also trading sub $10 yesterday, was trading up modestly post announcement. 

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