Owlet Baby Care Plans to Go Public in Yet Another SPAC Deal

Owlet Baby Care, a maker of smart wearable sock that monitors baby’s skin temperature, oxygen levels, and heart rate during sleep and sends relevant data to a companion app, announced that it would go public through a merger with Sandbridge Acquisition Corporation, a special purpose acquisition company (SPAC) co-sponsored by affiliates of Sandbridge Capital and PIMCO private funds.

The merger deal values the equity of the combined entity at $1,389 million.

Owlet reported net revenue of $49.8 million in 2019 and estimated that 2020’s revenue at $75.2 million, representing a 51% year-over-year growth. The company said that it expects to reach a net revenue of up to $1.06 billion by 2025.

However, the company wrote that its limited operating history includes net losses and that it currently relies on sales of the Smart Sock for most of its revenue and expects to continue to do so in the foreseeable future.

Founded in 2012, Owlet Baby Care is backed by over $50 million in venture capital, according to the Mercom funding database. The company’s investors include Trilogy Equity Partners, Eclipse Ventures, Broadway Angels, Enfield Ventures, Pelion Venture Partners, Eniac Ventures, Amazon Alexa Fund, RTP-HC, Capital Integral, Formation 8, Techstars, and others.

Owlet Baby Care’s flagship offering Owlet Smart Sock is a connected wearable that uses pulse oximetry to track a baby’s oxygen levels and heart rate during sleep. The Owlet Smart Sock integrates seamlessly with Owlet’s camera product, the Owlet Cam, enabling parents to see and hear their babies via Owlet’s convenient smartphone app.

The company also sells an app-based healthy sleep program called Dream Lab and is building up to release a pregnancy-band wearable for expecting mothers.

Ken Suslow, Chairman & CEO of Sandbridge Acquisition, added, “We are excited to be partnering with Lior Susan and the impressive Owlet team on their next-gen, mission-driven approach to building out the connected nursery ecosystem of the future – we believe the opportunity here is immense.”

“The Company’s modern data-driven platform serves as a fundamental tool for enabling parents to monitor their infants’ wellbeing while also presenting a compelling opportunity to leverage this real-time data into smart telehealth solutions as the next wave of this dynamic platform continues to evolve. Sandbridge is truly gratified to partner with Owlet on such substantial growth opportunities in support of global infant health & wellness.”

The Boards of Directors of both Owlet and Sandbridge have unanimously approved the proposed transaction.

Advisors: BofA Securities is serving as exclusive financial advisor to Owlet, and Latham & Watkins is serving as legal counsel. Citigroup is serving as exclusive capital markets advisor to Sandbridge, and Citigroup and BofA Securities are serving as private placement agents to Sandbridge. Ropes & Gray is serving as legal counsel to Sandbridge.

Recently, Sharecare announced that it is going public by merging with Falcon Capital Acquisition Corporation, a SPAC, at a $3.9 billion valuation. Learn more about other latest digital health deals


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