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Aug. 20, 2021, 8:17 a.m. EDT

LumiraDx, SPAC CA Healthcare slash value of merger deal by $2 billion

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By Tomi Kilgore

LumiraDx Ltd. and special purpose acquisition company (SPAC) CA Healthcare Acquisition Corp. said Friday the value of their merger deal to take LumiraDx public has been cut by 40%, citing "various considerations," including recent market environment for publicly traded diagnostic companies and declines in COVID-19 testing volumes. The new deal terms lowers the pro forma enterprise value of the combined company to $3 billion from $5 billion, while the combined group is still expected to receive about $115 million in trust. The original deal terms were announced in early April. "LumiraDx has a clear strategy for addressing the large and underpenetrated testing market to increase next-generation POC market share," said CA Healthcare Chief Executive Larry Neiterman. "We believe these qualities and the recent business progress, combined with an adjusted valuation, support a highly compelling investment thesis on an absolute and relative basis."

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