Valo Health To Combine With Vinod Khosla-Backed SPAC In $2.8B Deal

Boston-based Valo Health LLC has agreed to go public through a reverse merger with a blank-check firm backed by venture capitalist Vinod Khosla, in a deal valuing the combined company at about $2.8 billion.
Founded in 2019, Valo Health is a biotech company that uses data analysis and artificial intelligence to help drug discovery and development.
Valo Health’s platform Opal has a pipeline of candidates across cardiovascular disease, oncology, and neurodegeneration.
Its deal with Khosla Ventures Acquisition Co (NASDAQ:KVSA), a special-purpose acquisition company (SPAC), is expected to deliver proceeds of $168.5 million from investors, including Khosla Ventures, NG MGG Strategic, Flagship Pioneering, and Caz Investments.
Khosla Ventures Acquisition went public in a $300 million initial public offering in March.
Samir Kaul, Founding Partner and Managing Director at Khosla Ventures will join Valo’s Board of Directors following the completion of the business combination expected in the third quarter of 2021.
Price Action: KVSA shares are down 2.82% at $9.93 during the market session on the last check Wednesday.