Bethesda, MD-based iLearningEngines and Arrowroot Acquisition announced a merger agreement at a pro forma implied enterprise value of $1.4 billion.
The target provides AI-powered learning automation and information intelligence for corporate and educational use.
If the deal is approved, iLearningEngines would list on the Nasdaq under new ticker symbol AILE.
The agreement includes a minimum cash requirement of $100 million “that will be funded through several sources,” according to the deal announcement. The combined entity will receive approximately $43 million from Arrowroot’s trust, assuming no redemptions. iLearningEngines will receive proceeds of a private convertible offering with participation from the SPAC’s sponsor Arrowroot Capital and other institutional investors. iLearningEngines is also in discussions to raise additional capital via institutional investors. The intended use of cash is primarily for M&A and growth.
Arrowroot raised $250 million in a February 2021 IPO although redemptions have eroded the trust significantly since then. Read more.
