The combined entity will operate as HeartFlow Group with an estimated $400m in cash
HeartFlow Holding has signed an agreement to merge with a special purpose acquisition company (SPAC) Longview Acquisition in a deal worth $2.8bn.
The merger is expected to allow HeartFlow to become a publicly traded company. Longview Acquisition is financed by affiliates of Glenview Capital Management.
The proposed deal values HeartFlow at an initial pro forma enterprise value of $2.4bn, as well as a fully distributed equity value of up to $2.8bn at signing.
The deal is expected to help HeartFlow to secure up to $599m of gross proceeds to boost growth and repurchase up to $110m of equity from long-time shareholders and employees.
Longview chairman and Glenview CEO Larry Robbins said: “For us, HeartFlow’s compelling investment attributes leapt off the page: addressing a massive unmet medical need with proprietary, innovative technology through a highly attractive business model that experts widely cite as delivering superior patient outcomes at lower systemic costs.”
HeartFlow, which was established 11 years ago, offers non-invasive, personalised cardiac tests and associated enterprise software suite solutions to treat heart disease.
The company provides HeartFlow FFRCT Analysis non-invasive cardiac test for stable symptomatic patients with coronary artery disease (CAD), a type of cardiovascular disease.
HeartFlow FFRCT Analysis enables to create a digital and personalised three-dimensional model of the heart. It offers CTA-derived Fractional Flow Reserve (FFRCT) values along the coronary arteries.
HeartFlow CEO and co-founder Dr John Stevens said: “We believe that our non-invasive, artificial intelligence-enabled, cloud-based enterprise software solution can transform cardiovascular care with risk assessment, diagnosis planning and treatment management.
“Importantly, we have brought together a talented group of individuals with deep expertise in technology, cardiovascular medicine, and the business of healthcare and a deep commitment to patients to deliver on this vision. I’m incredibly proud of the HeartFlow team in reaching this important milestone.”
Subject to the approval of Longview’s stockholders and the satisfaction or waiver of other customary conditions, the deal is expected to be completed in the fourth quarter of this year.
Once the proposed deal concludes, the combined entity will operate as HeartFlow Group with an estimated $400m in cash for growth capital, product development and general corporate requirements.