Medical Imaging Firm Butterfly Network to Go Public Via SPAC

Medical-imaging provider Butterfly Network is going public by merging with a SPAC, Longview Acquisition.
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Medical-imaging provider Butterfly Network said it would go public through a merger with Longview Acquisition LGVW, a special-purpose-acquisition company.

At last check Longview shares were trading up 21% at $11.89. 

Butterfly Network, Guilford, Conn., will be listed on the New York Stock Exchange under the ticker symbol BFLY.

Founded in 2011, Butterfly Network produces the Butterfly iQ, which it says is an ultrasound transducer that can perform whole-body imaging with a single handheld probe using semiconductor technology. 

The pro forma enterprise value of the merger is $1.5 billion. The company expects to have about $584 million in cash after the deal closes. 

Butterfly has raised more than $400 million from private investors.

All current Butterfly equity investors -- which include, among others, the Bill and Melinda Gates Foundation and the Edinburgh, Scotland, asset manager Baillie Gifford -- will convert their holdings to shares of the new company. No holder will sell stock into the transaction, Butterfly said.

The companies hope to complete the deal by the end of the first quarter.

Butterfly Chief Executive Lauren Faracci will continue to lead the public company and Founder Jonathan Rothberg will be chairman. Larry Robbins, chairman of Longview, will join the board.

Robbins is also CEO of the New York healthcare-investment firm and hedge fund Glenview Capital Management. At closing, Glenview and its affiliates are expected to own 7.6% of the new company.