UK digital health provider Babylon has announced plans to become a public company following a $4.2bn (£2.9bn) merger.

The company has entered into a definitive merger agreement with special purpose acquisition company Alkuri Global. US big data company Palantir has also taken a strategic stake in Babylon.

Following the merger the combined company will operate as Babylon and will operate on Nasdaq under BBLN. It will give the healthtech company a pro forma equity value of $4.2bn (£2.9bn).

The merger is expected to be completed in the second half of 2021.

The merger is expected to deliver up to $575m (£406m) gross proceeds, including up to $345m (£244m) from Alkuri Global.

Several external investors, including Palantir, have helped fund a $230m (£162m) private placement – a sale of stock shares to investors and private institutions. It is worth $10 (£7) a share.

Read more/Source: Digital Health