Rockley Photonics SPAC merger : Chips supplier to merge with SC Health in $1.2bn deal

Rockley Photonics SPAC merger : Rockley Photonics, a supplier of silicon photonic chips and modules, has agreed to merge with SC Health, a special purpose acquisition company (SPAC), in a deal that values the former at $1.2 billion.

The merger will enable Rockley Photonics to become a publicly traded company on the New York Stock Exchange (NYSE), where it will trade as RKLY.

Established in 2013, Rockley Photonics supplies its integrated photonics chipsets and modules for high-volume sensor and communication products.

The Rockley Photonics SPAC merger will speed up the commercial roll out of the former’s sensing platform, which is expected to enable continuous, non-invasive monitoring of multi-modal biomarkers.

Built on its silicon photonics platform, the company’s “clinic-on-the-wrist” technology is said to be considerably more accurate than the commonly used LED sensors in wearables like smart watches and fitness bands. Besides, the company’s technology is claimed to help in the continuous monitoring of key vitals in a manner that was possible in the past with only clinical machines.

Rockley Photonics by integrating laboratory precision diagnostics into wearables, the company expects to help consumers in detecting diseases earlier, better manage their nutrition, and focus on preventive healthcare.

Rockley Photonics SPAC merger : Rockley Photonics and SC Health announce $1.2bn merger deal. Image courtesy of SC Health/Business Wire, Inc.

Comments on the Rockley Photonics SPAC merger

Dr. Andrew Rickman – Rockley Photonics founder and CEO, commenting on the Rockley Photonics SPAC merger, said: “Our partnership with SC Health positions us to accelerate our time-to-market for our compelling health and wellness solutions. Our proven sensor technology, world-class partners and a relentless focus on execution will enable Rockley to deliver life-changing benefits to an enormous number of people.

“We believe that bringing laboratory diagnostics to the wrist will transform patient monitoring, healthcare delivery, and overall consumer health and wellbeing.”

The deal is likely to provide gross proceeds of up to $323 million to the combined company. This includes up to $173 million of cash held in the trust account of SC Health.

The Rockley Photonics SPAC merger is also underpinned by a $150 million private investment in public equity (PIPE) at $10 per share. The PIPE investors are Senvest Management, UBS O’Connor, Medtronic, and others.

The merger, which is subject to approval from SC Health’s shareholders, applicable regulatory approvals, and other customary closing conditions, is expected to be completed in Q2 2021.