Founded in 2009, Allurion offers full-stack weight loss platform which includes the Allurion Program, a proprietary behaviour change programme, and the AI-powered digital therapeutic Virtual Care Suite
Allurion Technologies to merge with Compute Health Acquisition. (Credit: Gerd Altmann from Pixabay)
US-based weight loss technology firm Allurion Technologies has agreed to merge with Compute Health Acquisition, a special purpose acquisition corporation (SPAC), in a deal that values the combined company at a pro forma enterprise value of $500m.
The deal with the SPAC will enable Allurion Technologies to become a publicly listed company, whose common stock is expected to be traded on the New York Stock Exchange (NYSE).
A minimum cash condition of $70m is included in the proposed merger.
Besides, the combined entity is anticipated to receive gross cash proceeds of at least $87m.
Founded in 2009, Allurion offers full-stack weight loss platform. It includes the Allurion Program, which combines the swallowable, procedure-less intragastric balloon for weight loss.
A proprietary behaviour change programme, and the Virtual Care Suite, which is an artificial intelligence (AI)-powered digital therapeutic, and remote patient monitoring solution, are also included in the platform.
Allurion Technologies co-founder and CEO Shantanu Gaur said: “Allurion is just beginning its mission to end obesity around the world. With over 100,000 patients treated and counting, we have our sights set on touching the lives of the two billion people globally who are overweight.
“By combining our revolutionary Allurion Balloon with a digital platform and behaviour change program, we have created the world’s first and only full-stack weight loss platform. We look forward to investing this capital to fulfil our mission.”
The Allurion balloon is swallowed as a capsule and filled under the supervision of a healthcare provider without surgery, endoscopy, or anaesthesia. After four months, the balloon is emptied and passed out of the body naturally.
A fully committed private investment in public equity (PIPE) and a non-dilutive, synthetic royalty financing from RTW Investments are also included in the proposed deal. The PIPE, which will be led by RTW Investments, will close at the same time as the business combination.
The deal, which is subject to approval by the SPAC’s stockholders and Allurion Technologies’ stockholders alongside other customary conditions, is anticipated to close in the first half of this year.