British health startup Babylon is close to confirming a deal to go public in a merger with blank-check company Alkuri Global Acquisition Corp.

Babylon is in advanced talks with Alkuri and a deal could be announced next week, confidential sources familiar with the matter told Bloomberg.

The deal, which could value the web doctor at around $3.5bn, prompted shares in Alkuri to rise 1.1 per cent today.

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The blank-check company has lined up investors to provide $270m of private investment in public equity to support the deal, according to sources.

Alkuri is led by Groupon’s ex-CEO Rich Williams and former chief operating officer Steve Krenzer, who left their roles last year after the company failed to execute turnaround plans.

Babylon’s app lets users book appointments with therapists, check symptoms and speak to doctors on video call.

It can be used to seek advice on treatment for a range of conditions including kidney disease and hair loss.

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