Baby monitor maker Owlet hatches $1.4 billion blank-check deal to go public

Owlet Baby Care Inc, a maker of baby monitoring devices, will go public through a merger with a blank-check firm backed by private equity firm Sandbridge Capital, in a deal that values the equity of the combined entity at about $1.4 billion.

The deal includes a $130 million private investment anchored by Fidelity Management & Research LLC, Neuberger Berman Funds and funds affiliated with PIMCO and OrbiMed, among others, the companies said on Tuesday.

Sandbridge Acquisition Corporation, a special purpose acquisition company (SPAC), raised $200 million through an initial public offering last year.

Founded in 2012, Owlet’s flagship baby monitoring device, Owlet Smart Sock, uses pulse-oximetry technology to track the heart rate, oxygen levels and sleep patterns of babies.

Owlet will list on the New York Stock Exchange after the merger and will trade under the symbol “OWLT”.

SPACs are shell companies that raise funds to take a private company public. It has emerged as a popular alternative for companies looking to enter public markets as it allows them to sidestep the hassles and scrutiny associated with a traditional IPO.

Source: Reuters