By Emma-Victoria Farr and Abhinav Ramnarayan
LONDON (Reuters) – Amsterdam-listed blank check company Odyssey has agreed to buy pharmaceutical company BenevolentAI, in the biggest acquisition by a European special purpose acquisition vehicle (SPACs) to date.
The 300 million euro ($338.79 million) Amsterdam-listed SPAC, backed by the founders of M&A advisory Zaoui & Co and the former head of Natixis Investment Managers, values UK-based BenevolentAI at up to 1.5 billion euros after the transaction. The net transaction value is 390 million euros.
Odyssey will raise an additional 135 million euros to pay for the deal and cover transaction fees. The money is being raised from investors including Singapore’s state investor Temasek and pharma giant AstraZeneca.
The merger represents the largest ever European SPAC merger and one of Amsterdam’s biggest biotech listings, according to a statement by the companies.
Blank cheque vehicles allow companies to obtain a stock market listing without going through the process of an initial public offering (IPO).
Several SPACs have listed in Amsterdam, potentially boosting the Dutch capital’s credentials as a hub for fast-growing companies. To date, London has only played host to one major SPAC in 2021, after recently updating its rules to make it easier for such listings.
BenevolentAI is a clinical-stage “artificial intelligence” (AI) drug discovery company that says it combines advanced AI and machine learning with science to develop medicines.
The deal will give Benevolent up to $400 million in capital which it intends to use to invest in its technology platform and scale up its clinical pipeline.
($1 = 0.8855 euros)
(Reporting by Emma-Victoria Farr; Editing by Rachel Armstrong)
