UPDATE 1-Biotech firm Ginkgo to merge with Harry Sloan-led SPAC in $15 bln deal
May 11 (Reuters) - Ginkgo Bioworks will go public through a merger with a blank-check company led by former Hollywood executives Harry Sloan and Jeff Sagansky, in a deal that values the biotech company at $15 billion, the companies said on Tuesday.
The deal with Soaring Eagle Acquisition Corp SRNG.O is expected to fetch $2.5 billion in proceeds for the combined entity, the companies said. Baillie Gifford, Putnam Investments and accounts advised by ARK Investment Management have agreed to invest $775 million in the deal.
Boston-based Ginkgo is also backed by Bill Gates' private investment firm Cascade Investment. Ginkgo received a $1.1 billion loan from the U.S. government in November for COVID-19 testing and production of raw materials for therapies that may help address future pandemics.
Special purpose acquisition companies, or SPACs, are shell companies that raise funds through an initial public offering to take a private company public through a merger at a later date.
(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)