Troubled health tech firm Babylon has placed two of its divisions into administration but has found a buyer for its clinical services business.
Babylon Health, which built the NHS GP at Hand app for facilitating virtual appointments, has appointed administrators for its UK holding company Babylon Group Holdings as well as its AI research division Babylon Partners, according to court records.
Alvarez & Marsal were confirmed last night as the administrator for Babylon. It has sold its clinical services business, which includes GP at Hand, to US health tech company eMed Healthcare.
The GP at Hand app serves 100,000 patients in the UK and the sale means it will continue operating as normal, administrators said.
Alvarez & Marsal Europe’s managing director, Andrea Jakes, said: “The appointment of administrators over Babylon’s UK business to facilitate a sale to eMed ensures the least possible disruption for Babylon users, which should continue to operate as normal.”
Babylon Health, which rose to prominence during the Covid-19 pandemic and received the support of then-Health Secretary Matt Hancock, was once hailed as a major British tech success story.
It was valued at $4.2bn when it listed on the New York Stock Exchange through a merger with a special purpose vehicle.
Shares in the firm quickly plummeted as it consistently failed to bring in revenue, losin more than £170m in 2022.