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July 16, 2021

HeartFlow to go public with $2.8bn SPAC merger deal 

The merged company will operate as HeartFlow Group and focus on transforming the precision heart disease care continuum.

HeartFlow has signed a definitive business combination agreement worth about $2.8bn with special purpose acquisition company (SPAC) Longview Acquisition Corp II.

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What is driving M&A activity in the MedTech space?

The COVID-19 pandemic has left an indelible mark on the MedTech landscape. Changes in how healthcare is delivered, and new treatment modalities, are creating opportunities and challenges for both new and traditional players. As companies sought out opportunities during the pandemic-driven downturn, the number and value of mergers and acquisition deals in the MedTech space increased. Companies worked to reposition themselves in the newly aligned healthcare world, but with further economic turmoil expected: will these trends be repeated? And what tech areas should firms be looking to expand their capabilities into? GlobalData’s report, “Themes driving M&A activity in the Medical Devices Sector, Q1 2022,” draws upon GlobalData’s extensive MedTech deals databases, highlighting major trends and hot themes in M&A activity. This report will assist you in:
  • Understanding value and volume trends in M&A from Q1 2018 to Q1 2022
  • Understanding regional trends in M&A activity
  • Understanding which medical device sectors are leading M&A activity, and which are lagging
  • Understanding the leading tech trends in Q1 2022 M&A activity
  • Knowing the key deals that occurred during Q1 2022
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The move to make HeartFlow public will aid the company in expediting adoption and funding its goal of improving the precision heart disease care continuum.

The deal values the company at a preliminary pro forma enterprise value of nearly $2.4bn and an entirely distributed equity value of about $2.8bn at signing.

The transaction is anticipated to offer up to $599m of gross proceeds to boost growth and allow the company to buy back up to $110m of equity from long-term stakeholders and employees.

Established in 2010, HeartFlow focuses on offering precision heart care through non-invasive, customised cardiac tests and software solutions for heart diseases.

A core product of the company, HeartFlow FFRCT Analysis is a non-invasive cardiac test indicated for stable symptomatic coronary artery disease (CAD) patients.

It generates a digital and tailored three-dimensional model of the heart as well as offering computed tomography angiogram-derived Fractional Flow Reserve (FFRCT) values along the coronary arteries.

This data can be used to understand the severity of the coronary blockage and aid in choosing the most suitable therapy for patients.

The test has received regulatory approval in the US, EU, UK and Japan and is marketed in these regions.

HeartFlow board of directors chairman William Weldon said: “This partnership with Longview and the company’s existing investors will propel HeartFlow to further assist physicians in diagnosing, managing and delivering precision care to patients with CAD.”

On concluding the acquisition, the merged company will run as HeartFlow Group.

The deal will offer the new company nearly $400m in cash for growth capital, developing products and other corporate needs.

Subject to the necessary approval, including a declaration from the US Securities and Exchange Commission, the merger is set to conclude in the fourth quarter of the year.

Both the board of directors of Longview, which is funded by Glenview Capital Management affiliates, and HeartFlow have approved the acquisition.

Last month, Pear Therapeutics entered a definitive business combination agreement with a SPAC, Thimble Point Acquisition, to become a public company.

Related Companies

Free Report
img

What is driving M&A activity in the MedTech space?

The COVID-19 pandemic has left an indelible mark on the MedTech landscape. Changes in how healthcare is delivered, and new treatment modalities, are creating opportunities and challenges for both new and traditional players. As companies sought out opportunities during the pandemic-driven downturn, the number and value of mergers and acquisition deals in the MedTech space increased. Companies worked to reposition themselves in the newly aligned healthcare world, but with further economic turmoil expected: will these trends be repeated? And what tech areas should firms be looking to expand their capabilities into? GlobalData’s report, “Themes driving M&A activity in the Medical Devices Sector, Q1 2022,” draws upon GlobalData’s extensive MedTech deals databases, highlighting major trends and hot themes in M&A activity. This report will assist you in:
  • Understanding value and volume trends in M&A from Q1 2018 to Q1 2022
  • Understanding regional trends in M&A activity
  • Understanding which medical device sectors are leading M&A activity, and which are lagging
  • Understanding the leading tech trends in Q1 2022 M&A activity
  • Knowing the key deals that occurred during Q1 2022
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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