Zapata Computing ( dba Zapata AI) and Andretti Acquisition announced today that they have entered into a business combination at an implied pre-money equity value of $200 million.
The target is an industrial generative AI software company.
If approved, Zapata AI is expected to list on the New York Stock Exchange under new ticker symbol ZPTA.
Terms call for existing Zapata shareholders to roll over 100% of their equity into the combined entity, or 20 million shares at $10 each. Andretti Acquisition’s sponsors and certain investors that own or have the right to receive founder shares will own a combined 5.8 million shares, at an implied value of approximately $58 million. The SPAC’s public shareholders currently hold approximately 7.9 million shares. The pro forma equity value of the combined company (inclusive of the remaining cash in trust at Andretti Acquisition after redemptions) is expected to be between $281 million and $365 million, depending on redemptions.
Andretti Acquisition said in July it had signed a non-binding letter of intent for a merger with a generative AI software company.
Two key members of the management team are racing legends Mario and Michael Andretti.
The SPAC raised $200 million in February 2022 with plans at that time to focus on opportunities that could “benefit from the iconic Andretti brand name in the broadly-defined automotive industry,” according to the original S-1 registration statement. Read more.
