Training software firm iLearningEngines to go public via $1.4 bln SPAC deal (updated)

iLearningEngines

27/04/2023 23:14

(Adds comments from CEO interview, changes sourcing)
    By Echo Wang
       NEW YORK, April 27 (Reuters) - Training software company
iLearningEngines Inc agreed to go public through a merger with
blank check company Arrowroot Acquisition Corp  ARRW.O  in a
deal that values the combined company at $1.4 billion, it said
on Thursday.
    The deal will provide iLearningEngines with $143 million in
gross proceeds, some of which will be used for future
acquisitions. Reuters was first to report the deal earlier on
Thursday. 
    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. 
    "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.
    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".
    Cooley LLC and Goodwin Procter LLP were the legal advisers
on the deal. 

 (Reporting by Echo Wang in New York; Editing by Anirban Sen,
Grant McCool and Deepa Babingtong)
 ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging:
E.Wang@thomsonreuters.com@reuters.net))