Butterfly Network, an innovative digital health company that is working to democratize medical imaging and contribute to the aspiration of global health equity, announced that it has completed its business combination with Longview Acquisition, a special purpose acquisition company sponsored by an affiliate of Glenview Capital Management, (“Glenview”). The business combination, which was approved by Longview’s stockholders at its special meeting held on February 12, 2021, will fuel further adoption and help accelerate Butterfly’s current and future pipeline of innovative technologies, which have the potential to transform health care delivery and drive a direct impact for patients.
The transaction resulted in the combined company being renamed to “Butterfly Network” with its Class A common stock and warrants to commence trading on the New York Stock Exchange (“NYSE”) under the symbols “BFLY” and “BFLY WS”, respectively.
Working to create the new image of health, Butterfly has developed a groundbreaking single-probe, whole-body point-of-care ultrasound solution leveraging its patented Ultrasound-on-Chip™ technology. The Company’s breakthrough software solutions can integrate into hospital networks to help clinicians transform care delivery and improve efficiencies.
Today, Butterfly also announced that unaudited 2020 full-year revenues are at least $45 million, representing a full-year growth rate of at least 63% compared to the full year 2019, each ahead of the prior forecast. Butterfly plans to disclose its fourth quarter and full-year 2020 financial results in March, followed by a live conference call and webcast to discuss the results and business plans.
“2020 was a milestone year for Butterfly as we made significant progress towards fulfilling our mission to deliver innovative ultrasound technology that is easy to use, integrates into clinical decision-making workflow, and ultimately lowers the cost of care,” said Dr. Jonathan Rothberg, founder of Butterfly and Chairman of the Board of Directors of the combined company. “Marks yet another significant moment for the Company that will enable us to expand and accelerate our collective vision.”
“I am incredibly excited to join this talented organization that has the potential to make a profound impact on global health care,” stated Dr. Todd Fruchterman, President and Chief Executive Officer of Butterfly Network, “Butterfly allows people to think differently about the value of ultrasound as a critical and integrated part of the full patient journey. By making ultrasound more accessible and deployable across a variety of care settings, we have the opportunity to expand the use cases of ultrasound and impact disease interception, helping clinicians make more informed decisions to take action earlier. As we further develop our roadmap, we plan to partner with our customers to expand into novel market applications including chronic disease management, which impacts more than 100 million patients in the United States alone.”
The combined company will be led by industry veteran, Dr. Todd Fruchterman as President and Chief Executive Officer, alongside its highly capable executive team. The combined company’s board of directors will include Dr. Rothberg as Chairman, Dr. Fruchterman, and Glenview founder, Larry Robbins. Butterfly has also welcomed new members to the combined company’s board: Dawn Carfora (Vice President, Business Planning and Operations, Global Business, Facebook), John Hammergren (former Chairman and CEO, McKesson), Gianluca Pettiti (Senior Vice President and President of Specialty Diagnostics, Thermo Fisher Scientific,), and S. Louise Phanstiel (Chair of the Board of Directors, Myriad Genetics).
As a result of the business combination, Butterfly received approximately $589 million prior to transaction fees, including approximately $414 million of cash held in Longview’s trust account and $175 million from private placement (PIPE) investors, including Eldridge, Fidelity Management & Research Company, Glenview, Ridgeback, Tenet Healthcare, UPMC Enterprises, and Wellington Management. In addition, Butterfly’s current management and existing equity holders have rolled 100% of their equity into the combined company.