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 had completed its business combination with a special purpose acquisition company Sandbridge Acquisition Corporation.
The business combination and concurrent private placement, which Sandbridge’s stockholders approved, provide over $135 million to accelerate the company’s broad product pipeline, deepen penetration, and expand globally.
Following the transaction, the company was renamed Owlet, Inc., and its Class A common stock and warrants started trading on the New York Stock Exchange (“NYSE”) under the symbols “OWLT” and “OWLT WS,” respectively.
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 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.
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.
Advisors: BofA Securities served as exclusive financial advisor to Owlet, and Latham & Watkins served as legal counsel. Citigroup served as exclusive capital markets advisor to Sandbridge and Citigroup, and BofA Securities served as private placement agents to Sandbridge. Ropes & Gray served as legal counsel to Sandbridge.
In the first half of 2021, a total of 12 digital health companies have gone public (2 SPACs and 10 IPOs).