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February 16, 2021

Guilford’s Butterfly Network begins trading on NYSE

PHOTO | Courtesy Butterfly Inc. Butterfly iQ uses semiconductor technology to replace large and expensive ultrasound carts.
By Natalie Missakian

Guilford pocket-sized ultrasound device maker Butterfly Network Inc. began trading on the New York Stock Exchange Tuesday morning after completing its merger with Longview Acquisition Corp.

Stockholders of Longview approved the business combination in a special meeting on Friday, with nearly 100% of Longview shares voting in favor of the merger, according to the company.

Butterfly’s stock opened at $24.80 on Tuesday. It trades under the ticker symbol BFLY. 

The startup founded in 2011 by Connecticut bioscience entrepreneur Jonathan Rothberg received roughly $589 million in cash from the merger.

That includes $414 million from Longview and another $175 million from a private placement that closed concurrently. 

The deal, reached in November, values Butterfly at $1.5 billion.

Rothberg said in a statement that 2020 was “a milestone year for Butterfly as we made significant progress towards fulfilling our mission to deliver innovative ultrasound technology that is easy to use, integrates into clinical decision-making workflow and ultimately lowers the cost of care.” 

“Today marks yet another significant moment for the company that will enable us to expand and accelerate our collective vision,” he said. 

Rothberg is chairman of the combined company and remains its largest controlling shareholder. The company last month tapped former 3M executive Todd M. Fruchterman to lead the combined venture.

Longview is a special purpose acquisition company, or SPAC, backed by New York hedge fund Glenview Capital Markets, founded by Larry Robbins. 

Also known as “blank check” companies, SPACs are shell companies formed specifically to raise capital through an initial public offering to acquire an existing company. 

They have become a popular way for startups to go public without going through the regulatory hurdles of an IPO.

Butterfly also announced Tuesday that it brought in at least $45 million in revenue in 2020, a 63% growth rate over 2019. It plans to disclose its full fourth-quarter and full-year financial results in March. 

Butterfly invented a low-cost, hand-held ultrasound device, called Butterfly iQ, that resembles an electric hair trimmer and plugs into an iPhone for instant imaging. The device is powered by Butterfly’s patented technology known as “ultrasound-on-a-chip.”

The company’s goal is to make ultrasound imaging technology inexpensive and accessible to everyone.

Contact Natalie Missakian at news@newhavenbiz.com

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