(Bloomberg) -- A blank-check firm started by serial dealmaker Chamath Palihapitiya and Suvretta Capital is in merger talks with medical technology company ProKidney LLC, according to people with knowledge of the matter.
The combined company would be valued at more than $1 billion in a transaction, the people said, asking not to be identified discussing private information. An announcement could come as soon as next week, the people said.
ProKidney and the special purpose acquisition company, Social Capital Suvretta Holdings Corp. III, haven't reached a final agreement and it's possible talks could end without one, they added.
Representatives for ProKidney and the SPAC didn't immediately respond to requests for comment.
ProKidney is developing a technology that restores kidney function by using the patient's own cells, according to its website. The company was started by a group of investors led by Pablo Legorreta, the founder and chief executive officer of Royalty Pharma Plc.
Winston-Salem, North Carolina-based ProKidney acquired InRegen and its affiliate Twin City Bio in 2019 in a $62 million transaction, according to a statement at the time.
The partnership between Palihapitiya and Suvretta Capital has so far resulted in four SPACs that have each raised $250 million. Each SPAC is targeting a subsector within biotechnology including neurology, oncology, organs and immunology.
Palihapitiya's SPACs have previously combined with companies including Clover Health Investments Corp. and Opendoor Technologies Inc.
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