Learning automation startup iLearningEngines to go public in a $1.4 billion SPAC deal
SPAC is back! After many months of a massive slowdown in SPAC activity slowdown, it appears the space is slowly regaining its footing. Today, Bethesda, Maryland-based iLearningEngines announced it has agreed to public via a merger with blank check company Arrowroot Acquisition Corp in a deal that values the combined company at $1.4 billion.
As part of the deal, iLearningEngines will receive $143 million in gross proceeds, some of which will be allocated toward future acquisitions, Reuters was the first to report the deal earlier on Thursday.
The deal comes at a time when the business potential of artificial intelligence software has piqued the eye of the world’s greatest investors, as the popularity of futuristic chatbots such as ChatGPT has risen in recent months. According to PitchBook, artificial intelligence, and machine learning startups have funded over $12.1 billion this year.
In 2021, Arrowroot Acquisition Corp completed its initial public offering, raising $290 million to fund potential mergers with companies in the enterprise software sector. Following the completion of the deal, the merged entity will be rebranded as iLearningEngines, Inc, and will be listed on Nasdaq under the ticker symbol “AILE.”
Sometimes called a blank-check company, SPAC is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC’s initial public offering (IPO). SPAC activity has slowed down since the second half of 2022 due to inflation and a slowdown in the overall economy. However, some analysts expect a resurgence in the second half of the year as inflation cools down.
The deal comes at a time when the business potential for AI software continues to draw significant interest from some of the world’s largest investors, which was triggered by the popularity of OpenAI ChatGPT. PitchBook reports that global artificial intelligence and machine learning startups have raised approximately $12.1 billion this year.
“What we’re doing is helping every company create their own ChatGPT that is 100% accurate with its enterprise data and content”, said iLearningEngines CEO Harish Chidambaran in an interview.
Founded in 2010 by Harish Chidambaran, iLearningEngines is a Training as a Service Technology platform that provides customized training materials to businesses via the use of AI-powered automation tools and software. It provides services to businesses in a variety of industries, including healthcare, education, energy, and transportation.