Maker of computerized cardiac models HeartFlow to go public via $2.4B SPAC merger

Once combined, the company will operate as HeartFlow Group and will trade on the New York Stock Exchange under the symbol HFLO.
By Mallory Hackett
11:30 am
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Photo: Martin Barraud/Getty Images

Heartflow, a company that specializes in creating computerized heart models to treat coronary diseases, announced plans to go public through a $2.4 billion merger with Longview Acquisition Corp. II, a special purpose acquisition company (SPAC) sponsored by affiliates of Glenview Capital Management.

Once combined, the company will operate as HeartFlow Group and trade on the New York Stock Exchange under the symbol HFLO.

The deal is expected to bring in $400 million in cash to be used for company growth, product development and other general corporate purposes, according to the announcement.

“The HeartFlow team is dedicated to providing heart disease patients the best possible care and democratizing access to this incredible technology,” William Weldon, chairman of the board of directors of HeartFlow, said in a statement.

“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.”

Both companies' boards have unanimously approved the merger. The transaction now awaits approval from Longview’s stockholders and the completion of other customary conditions. The companies expect the deal to close in the fourth quarter of 2021.

WHY THIS MATTERS

HeartFlow’s lead product is the FDA-cleared HeartFlow FFRCT Analysis, a noninvasive cardiac test for stable symptomatic patients with coronary artery disease. The technology uses data from CT scans to create a personalized 3D model of the coronary arteries and analyzes the impacts that blockages have on flow.

Physicians can use the tool to better understand how the coronary blockage is impeding blood flow to determine the best treatment plan for each patient. To date, more than 100,000 patients have been analyzed using the tool, the company said.

Prior to this merger, HeartFlow raised $543 million in total funding, including a $240 million Series E round in 2018. The company has also collaborated with notable healthcare companies, including GE Healthcare, and is covered under UnitedHealthcare.

The merger will allow HeartFlow to accelerate the adoption of its analysis tool to realize its mission of transforming the heart disease care continuum.

“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,” Dr. John Stevens, president, CEO and cofounder of HeartFlow, said in a statement.

“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.”

THE LARGER TREND

SPAC mergers have become the hottest public exit strategy in digital health over the last year. In the first half of the year, five of 11 digital health public exits were completed through a SPAC deal and are anticipated to be the strategy of choice for all of the currently-expected public exits for the remainder of this year, according to Rock Health.

Companies that have recently merged with SPACs include Pear Therapeutics, Valo Health, BabylonScience 37, Better Therapeutics, Owlet, 23andMe, and Hims & Hers.

ON THE RECORD

“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,” Larry Robbins, chairman of Longview and CEO of Glenview, said in a statement.

“For us, HeartFlow’s compelling investment attributes leapt 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."

 

Maker of computerized cardiac models HeartFlow to go public via $2.4B SPAC merger
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