London-based multinational digital health firm Babylon has sold almost all of its U.K. assets to digital health company eMed Healthcare U.K., a subsidiary of U,S, company eMed, after announcing in early August that its deal to merge with Swiss tech firm MindMaze was canceled.
Babylon Healthcare Services Limited, the piece of Babylon purchased by eMed and the bulk of what remained of Babylon Health, includes a U.K.-based telehealth practice focused on preventative care that contracts with healthcare providers. Financial terms of the sale were not disclosed.
The company’s app G.P. at Hand, which provides primary health services to NHS customers in London and is still operating, is not part of the sale.
According to an SEC filing, “The sale will provide financial stability and allow [Babylon] to positively impact the lives of many more people within the U.K. and carry on exploring innovative approaches to proactive healthcare.”
THE LARGER TREND
Babylon Health has struggled after going public through a $4.2 billion special purpose acquisition company merger with Alkuri Global Acquisition in 2021.
Its stock price has become worthless, with a market cap of just over $5,000 and a current trading value of $0.00020 per share.
In May, Babylon announced its plans to go private, announcing it accepted a take-private proposal from AlbaCore Capital on behalf of its affiliate MindMaze. The deal included a secured term loan facility for up to $34.5 million and Babylon’s transition from a publicly traded company to a private entity. Babylon also planned to merge with MindMaze.
However, last month, Babylon reported the deal with MindMaze was not moving forward, and the company would pursue the sale of its U.K. business to third parties and exit its U.S. business.
Babylon subsequently filed for bankruptcy protection in Delaware last month for two U.S. subsidiaries, Babylon Inc. and Babylon Healthcare Inc., as it sought to liquidate its assets.