The Nightcap from SPAC Track

- Babylon is a world leading, digital-first, value-based care company, covering 24 million people across four continents

- The company has scaled at c.5x annual revenue growth in 2020, and is expected to grow by c.4x in 2021

- Transaction implies a $4.2 billion equity value for Babylon including an estimated $575 million in gross proceeds

- Over 85% of raised cash from new, institutional external investors, including strategic investor Palantir (NYSE:PLTR)

- Babylon Founder and CEO Dr. Ali Parsa will become Chairman and CEO of the combined entity; an Alkuri Global representative will join the Board of Directors

Hedge-fund billionaire William Ackman’s special-purpose acquisition company is nearing a transaction with Universal Music Group that would value the world’s largest music business at about $40 billion, people familiar with the matter said.

The deal would be the largest SPAC transaction on record, exceeding the roughly $35 billion that Singaporean ride-hailing company Grab Holdings Inc. was valued at in a similar deal recently, according to Dealogic. It would have a so-called enterprise value, taking into consideration Universal’s debt, of about $42 billion.

It’s not guaranteed Universal and the SPAC, Pershing Square Tontine Holdings Ltd. will reach a deal. If they do, it could be finalized in the next few weeks and isn’t subject to any additional due diligence, the people said.