What You Should Know:
– Virtual Therapeutics, a leader in using engaging games for mental health treatment, announced today it will acquire Akili, Inc. (Nasdaq: AKLI), a prominent digital therapeutics company. This merger creates a diversified powerhouse in the digital health industry.
– Once the acquisition is complete, Akili’s common stock will be delisted from all public stock exchanges. The combined entity’s focus on mental health and broader digital therapeutics solutions positions it to play a major role in improving healthcare outcomes for a wider audience.
Terms of the Agreement
Akili shareholders will receive $0.4340 per share in cash, representing a 4% premium over Akili’s closing price on May 28th, 2024. This translates to a significant 85% increase compared to Akili’s closing price on April 29th, 2024, just before the company announced the exploration of strategic alternatives. Following the merger, Virtual Therapeutics will remain private, with Akili operating as a wholly-owned subsidiary.
A Stronger, Combined Entity
Following the acquisition, the merged company will operate under the Virtual Therapeutics name as a privately held entity. Akili will continue to function as a wholly-owned subsidiary. This union is expected to create a more robust and diversified digital health company, combining Virtual Therapeutics’ expertise in game-based mental health solutions with Akili’s broader digital therapeutics offerings.
“In today’s global mental health crisis, patients deserve access to clinically validated solutions that address their specific needs. We have been able to advance multiple solutions on our platform since founding Virtual Therapeutics, and we look forward to taking a significant step forward through this merger,” said Dan Elenbaas, co-founder and CEO of Virtual Therapeutics. “The team at Akili has been successful in applying clinical and scientific rigor to bring new products forward, and we believe their expertise will complement our efforts. Together, we can build a company that brings these behavioral services to as many patients as possible – regardless of where they are or barriers that exist for them today.”
Transaction Timeline and Approval
The acquisition, approved by the boards of both companies, is expected to finalize in the third quarter of 2024. Standard closing conditions apply, including shareholder approval and Akili maintaining a minimum cash reserve at closing. Notably, the transaction does not depend on securing additional financing. TD Cowen is acting as exclusive financial advisor and Goodwin Procter LLP is acting as legal counsel to Akili. Baker & McKenzie LLP is acting as legal counsel to Virtual Therapeutics.
