HeartFlow today said that it will go public by merging with a SPAC called Longview Acquisition Corp.
The merger is valued at $2.4 billion plus an estimated $400 million in cash after closing. The transaction is expected to deliver up to $599 million of gross proceeds to HeartFlow to accelerate the growth of its noninvasive, personalized cardiac tests.
“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,” HeartFlow president, CEO and co-founder John Stevens said in a news release. “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.”
Through the deal, the combined company will operate as HeartFlow Group and is expected to trade on the New York Stock Exchange under the symbol HFLO.
“We are thrilled to co-invest with the associates, leadership and shareholders of HeartFlow to promote rapid adoption of their life-saving, revolutionary approach to cardiac evaluation,” Longview chairperson Larry Robbins said. “For us, HeartFlow’s compelling investment attributes leaped 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 develops the HeartFlow FFRCT analysis, a non-invasive cardiac test for stable symptomatic patients with coronary artery disease. It received FDA clearance in September 2019.
The Redwood City, Calif.-based company plans to expand its addressable market opportunity to over $50 billion through new products, new customer site additions and increased use of HeartFlow in existing healthcare systems.
The HeartFlow’s analysis software creates a digital, personalized 3D model of the heart. It provides CTS-derived Fractional Flow Reserve (FFRCT) values along the coronary arteries to help physicians understand the severity of a coronary blockage that is impeding blood flow to the heart and determine the best treatment option for the patient.
“The HeartFlow team is dedicated to providing heart disease patients the best possible care and democratizing access to this incredible technology,” HeartFlow chairperson 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.”
Before the HeartFlow deal, Longview took Butterfly Network public in February this year in an $859 million deal.
The merger is expected to close in the fourth quarter of this year, pending customary conditions and SEC approval.