By Echo Wang
NEW YORK (Reuters) – Training software company iLearningEngines Inc agreed to go public through a merger with blank check company Arrowroot Acquisition Corp in a deal that values the combined company at $1.4 billion, people familiar with the matter said on Thursday.
The deal, which is expected to be announced later on Thursday, will provide iLearningEngines with $143 million in gross proceeds, some of which will be used for future acquisitions, one of the sources said. The sources requested anonymity as these discussions are confidential.
The deal comes at a time when the business potential for artificial intelligence software has attracted massive interest from the world’s largest investors, as the popularity of futuristic chatbots like ChatGPT has surged in recent months.
Artificial intelligence and machine learning startups globally have raised about $12.1 billion so far this year, according to PitchBook.
Based in Bethesda, Maryland, iLearningEngines supplies companies with personalized training materials using AI-powered automation tools and software. It provides services to companies in various sectors including healthcare, education, energy and transportation.
Arrowroot Acquisition Corp raised $290 million through its initial public offering in 2021, with the aim of merging with companies in the enterprise software sector.
After the deal closes, the combined company will be named iLearningEngines, Inc and will trade on Nasdaq under the ticker “AILE”.
(Reporting by Echo Wang in New York; Editing by Anirban Sen and Grant McCool)
