LumiraDx, SPAC CA Healthcare slash value of merger deal by $2 billion

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LumiraDx Ltd. and special purpose acquisition company (SPAC) CA Healthcare Acquisition Corp. said Friday the value of their merger deal to take LumiraDx public has been cut by 40%, citing “various considerations,” including recent market environment for publicly traded diagnostic companies and declines in COVID-19 testing volumes. The new deal terms lowers the pro forma enterprise value of the combined company to $3 billion from $5 billion, while the combined group is still expected to receive about $115 million in trust. The original deal terms were announced in early April. “LumiraDx has a clear strategy for addressing the large and underpenetrated testing market to increase next-generation POC market share,” said CA Healthcare Chief Executive Larry Neiterman. “We believe these qualities and the recent business progress, combined with an adjusted valuation, support a highly compelling investment thesis on an absolute and relative basis.”

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