Seven years ago, Vivek Ramaswamy created Roivant Sciences with the aim of finding a new financial model for drug development. On Monday, Roivant Sciences announced it would be going public by merging with a special acquisition company in a deal that values Roivant at $7.3 billion.
Montes Archimedes Acquisition Corp., a special acquisition company sponsored by Jim Momtazee’s Patient Square Capital, has agreed to merge with Roivant in a transaction that includes a private financing, in which Palantir Technologies, Viking Global Investors, Softbank and others will invest $200 million in the publicly traded equity.
The transactions are expected to close in the third quarter of 2021 and will provide $611 million in fresh cash for Roivant’s drug development activities, pushing up Roivant’s net cash position to $2.3 billion.
Matthew Gline, CEO of Roivant, said in an interview the company had explored going public in a traditional initial public offering, but found merging with the Montes Archimedes SPAC a more attractive way to list its shares.
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