Temasek investment Pear Therapeutics to go public in US$1.6B SPAC deal

Sign at Temasek earnings briefingSign at Temasek earnings briefing In July 2018

Pear Therapeutics, part of the portfolio of Singapore state-owned investment company Temasek Holdings, is set to go public via an acquisition by the special purpose acquisition company (SPAC) Thimble Point Acquisition Corp. in a deal valued at around US$1.6 billion, according to a press release from the companies Tuesday.

Temasek was one of seven investors in the company’s US$50 million series B round in 2018 and one of nine investors in the US$64 million series C round in 2019, according to Crunchbase data. Softbank Vision Fund was one of 13 investors in the US$80 million series D round, the data show.

The deal includes up to US$276 million of funds from Thimble Point’s trust account and a US$125 million upsized private investment in public equity (PIPE), raising around US$400 million, the statement said.

Thimble Point, listed on Nasdaq, has a management team tied to the Pritzker Vlock Family Office.

The PIPE investment includes 5AM Ventures, Arboretum Ventures, Blue Water Science Advisors, LLC, dRx Capital (Novartis Pharma AG), The Eleven Fund, FORTH Management, Health Innovation Capital (HIC), JAZZ Venture Partners, a leading integrated delivery network, Neuberger Berman funds, Palantir, Pilot House, Pritzker Vlock Family Office, QUAD Investment Management, Sarissa Capital, Shanda Group, SoftBank Vision Fund 2, Temasek, and Trustbridge Partners, the statement said.

The PIPE offering was oversubscribed and raised from an initial US$100 million, the statement said, adding all existing equity investors will roll their holdings into the combined company. Those investors will hold 72 percent of the combined company, which will be called Pear Holdings, after the deal closes.

Pear Therapeutics is a developer of prescription digital therapeutics (PDTs), which are clinician-prescribed software to treat serious diseases.

The funds raised in the deal are ear-marked to commercialize Pear’s three FDA-authorized products, advance the pipeline of product candidates and scaling its platform to host a wider range of PDTs, the statement said. The three products target substance- and opiod-use disorders and insomnia.

“In our view, Pear is at a commercial inflection point, with the potential for rapid expansion. We believe this transaction will allow us to drive widespread usage of PDTs to treat major medical conditions and overcome significant barriers to patient care,” Corey McCann, president and CEO of Pear, said in the statement.

Kirthiga Reddy, partner at SoftBank Investment Advisers, said the company believed PDTs were creating a new category of medicine.

The deal is expected to be completed in the second half of this year.

A SPAC is essentially a “blank check” company, which raises funds in a public offering and seeks businesses or other assets to acquire later.