Babylon (NYSE:BBLN) provided an update this morning on its recapitalization transaction, announcing that it has accepted a take-private proposal from AlbaCore on behalf of its affiliate, digital neurotherapeutic platform MindMaze.

The parties expect the transaction to close by July, but as the two companies work to come together within the next few weeks, they will both continue executing their day-to-day operations. Over the mid-to-long term, Babylon and MindMaze intend to align the strengths of their organizations to deliver a novel care paradigm and deliver exceptional outcomes for all stakeholders.

The transaction establishes a new capital structure that reduces the pro forma company debt. It will also include immediate funding for Babylon’s current business operations and funds for the combined company, allowing it to focus on delivering growth and profitability over the near to mid-term.

As a result, Babylon will transfer its core operating subsidiaries to MindMaze and Babylon’s Class A ordinary shares will cease trading on the NYSE under the ticker symbol ‘BBLN’.

Additionally, the take-private proposal will not provide for any payment towards Babylon’s Class A ordinary shareholders as AlbaCore intends to exercise its rights under its debt agreements with Babylon.

Just last month, Babylon announced its plan to go private as it entered into an amendment and restatement of its senior secured term loan facility with AlbaCore for up to an additional $34.5 million in funding. The de-SPAC believes that this proposal will strongly position the company to accelerate its core mission of making high-quality healthcare more accessible and affordable.

InsureTech firm Babylon closed its $3.6 billion combination with Alkuri Global less than two years ago in October 2021. London-based Babylon provides digital self-help care tools and telemedicine services to patients in North America, Europe and Asia.