Health tech company Babylon has agreed to delist itself from the New York Stock Exchange to become a private company again, wiping out existing shareholders at a loss running into the millions.
The troubled British-founded firm, which built a remote healthcare app in 2013, will restructure itself into a new private entity with the Swiss firm MindMaze.
The deal will see MindMaze inject cash into the company to ease its debts. This is expected to go through in July.
MindMaze is a therapeutics firm that specialises in brain technology and digital neurotherapeutic solutions.
The companies have said they will continue to execute day-to-day operations as the deal is worked out.
At one time, Babylon was worth over $4bn and was controversially praised by former Health Secretary Matt Hancock. However, an extended period of struggle has seen the firm lose out on major NHS contracts, cut staff and face a £235m shortfall.
Babylon listed on the New York Stock Exchange in 2021 but has seen its share price drop from a high of $272.50 to just $0.77 prior to the delist.
The firm, working with Albacore Capital, had been looking for a buyer since May to avoid the drastic restructuring solution.
Among the hardest hit by the delisting are Swedish VCs Kinnevik and VNV Globla, along with the Swedish pension fund AMF and Swedbank Robur, which had a 42% stake wiped out.
The Saudi Arabian Public Investment Fund lost a 12% stake in Babylon.
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