Yahoo Finance Babylon Health Division Rescued as Part of UK Insolvency Process
(Bloomberg) -- Digital health firm Babylon’s UK business has been rescued by a US provider of in-home testing kits as part of an insolvency process.
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Babylon’s UK arm, which provides doctor appointments to private and National Health Service (NHS) patients, has been sold to eMed Healthcare in a move that should secure its future. More than 700,000 British patients have had access to Babylon’s platforms in the UK, which includes its NHS GP at Hand service.
Terms of the sale weren’t disclosed.
Earlier on Wednesday, Babylon Group Holdings Ltd and Babylon Partners Ltd filed notice of their intention to appoint administrators in the UK High Court, just weeks after a failed merger and as the business faced a cash crunch.
Restructuring firm Alvarez & Marsal said the sale includes Babylon’s corporate business which provides digital health care to businesses. The sale to eMed was first reported by the Telegraph.
The sale ensures the “least possible disruption” for Babylon users, said Andrea Jakes, managing director of Alvarez & Marsal Europe.
Babylon was founded in 2013 by entrepreneur Ali Parsa and lets private patients and large corporations speak with physicians online.
In October 2021, Babylon rejected a London listing in favor of going public in New York via a special purpose acquisition company. Ahead of the listing, the company was valued at $4.2 billion.
However, shares crashed and Babylon was forced to cut staff and attempted to sell parts of its business.
In June, Babylon announced it would be combining with the Swiss business MindMaze Group SA after a proposal from AlbaCore Capital LLP, its lender. The deal would have included the transfer of Babylon’s core operating subsidiaries to MindMaze.
However, earlier this month, Babylon said the proposed merger had collapsed. The company said Aug. 7 that it was exploring other options to “find the best possible outcome for its UK business,” and warned it may not have enough funds to continue operating.
The company earlier in August filed a Chapter 7 bankruptcy petition for a US subsidiary in Austin and shut down its operations.
--With assistance from Jeremy Hill and Robin Ajello.
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