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Three Firms Guide Valo Health’s $2.8 Billion SPAC With Khosla

June 11, 2021, 10:55 AM

Goodwin Procter is advising Valo Health LLC, a drug discovery platform created by the founder of the company that developed the Moderna vaccine for Covid-19, in its go-public merger with a special purpose acquisition company.

Latham & Watkins is advising the SPAC, Khosla Ventures Acquisition Co., an affiliate of Khosla Ventures LLC. Cooley is advising the private placement agent.

The transaction, expected to close in the third quarter, values the combined company at around $2.8 billion, according to a statement.

Boston-based Valo is among 100-plus science-based companies founded by life sciences venture capital company Flagship Pioneering, which also founded the developer of the mRNA Covid-19 vaccine known as Moderna, Flagship’s web site says.

Khosla and Valo said Valo’s platform has the potential to improve the success rates and speed of drug discovery and development compared with traditional operators.

Valo expects to get $168.5 million in fully committed private investment from investors including Khosla Ventures and Flagship, among others. It expects to use proceeds from the transaction to accelerate development of its platform and build its therapeutic and data strategy programs.

On closing, expected in the third quarter, Samir Kaul, founding partner and managing director at Khosla Ventures, is expected to join Valo’s board of directors, the statement says.

To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
To contact the editor responsible for this story: Chris Opfer at copfer@bloomberglaw.com; John Hughes in Washington at jhughes@bloombergindustry.com

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