LumiraDx Test Maker to Go Public in $ 5 Billion SPAC Deal

LumiraDx Ltd., a diagnostic company that produces Covid-19 tests, will go public through a reverse merger with a blank check company.

The UK-based firm will be combined with California Health care Acquisition Corp. in a deal that values ​​LumiraDx’s capital at $ 5 billion, the companies said in a statement.

While there is no equity placement attached to the transaction, LumiraDx has borrowed $ 300 million from BioPharma Credit Plc and an additional asset-based revolving credit facility of $ 100 million Capital One Financial Corp., according to the statement.

At $ 5 billion, the LumiraDx deal is the largest last year by a healthcare company with a Special Purpose Acquisition Company, or SPAC, according to data compiled by Bloomberg.

Covid-19 test

The LumiraDx machines, about the size of a brick, are designed to process around 30 different tests, including Covid-19, in just 12 minutes. The company is also developing a smaller device that will be available for home use.

The company has research, development, and support offices in Waltham, Massachusetts, and San Diego. In January, it filed for an initial public offering with the U.S. Securities and Exchange Commission.

LumiraDx estimates it will have revenues of $ 600 million to $ 1 billion this year, compared to $ 139 million in 2020, according to the statement. His clients include CVS Health Corp., the UK National Health Service and the Bill and Melinda Gates Foundation.

The global coronavirus pandemic has accelerated the placement of LumiraDx machines in a way that exceeded the company’s expectations, according to CEO Ron Zwanziger.

“There will be a significant long-term benefit to us from having so many more units in the field much earlier than would have happened without the pandemic,” he said in an interview.

Broader focus


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