KIRKLAND, Wash. & BOSTON - Virtual Therapeutics, a digital health company specializing in immersive game-based mental health treatments, has entered into a definitive merger agreement with Akili, Inc. (NASDAQ: AKLI), a leader in digital therapeutics. The transaction will see Akili shareholders receive $0.4340 per share in cash, a 4% premium over Akili's May 28, 2024 closing price, and an 85% premium over the price on April 29, 2024, before Akili announced it was exploring strategic alternatives.
Following the merger, expected to close in the third quarter of 2024, Virtual Therapeutics will remain privately held, with Akili becoming a wholly owned subsidiary. The deal is subject to various conditions, including a majority of Akili shares being tendered in a forthcoming offer and Akili maintaining a specified cash level. Akili's stock will be delisted from public exchanges post-transaction.
Dan Elenbaas, CEO of Virtual Therapeutics, emphasized the combined company's commitment to addressing the global mental health crisis by delivering clinically validated solutions to patients. Akili's CEO, Matt Franklin, noted the merger's potential to create a robust platform to address mental health needs through a combination of Akili's mobile digital therapeutics and Virtual Therapeutics' VR-based solutions and gaming expertise.
The boards of directors for both companies have approved the transaction, which is not contingent on financing. TD Cowen serves as Akili's exclusive financial advisor with Goodwin Procter LLP as legal counsel. Baker & McKenzie LLP is advising Virtual Therapeutics.
Akili has been at the forefront of developing cognitive treatments through advanced technology, with products delivered through engaging video game experiences. Virtual Therapeutics aims to provide scalable, accessible, and personalized mental health solutions, leveraging gaming mechanisms and cloud-based platforms for data analysis and deployment.
This merger announcement is considered a forward-looking statement and involves risks and uncertainties. It is based on current plans and projections and is subject to a number of factors that could cause actual events or results to differ materially.
The information provided in this article is based on a press release statement.
InvestingPro Insights
In light of the recent merger agreement between Virtual Therapeutics and Akili, Inc. (NASDAQ: AKLI), investors may find the following insights from InvestingPro particularly relevant. Akili's financial position shows it holds more cash than debt, which is a positive sign for liquidity and financial stability. Additionally, analysts are anticipating sales growth in the current year, indicating potential upside in Akili's business performance post-merger.
From a valuation standpoint, Akili's market capitalization stands at $32.85 million, with a Price / Book ratio as of Q1 2024 at 0.65, suggesting that the stock may be undervalued compared to its book value. Moreover, despite a challenging past year reflected in a -66.29% 1 Year Price Total Return, Akili has demonstrated a strong return over the last month, with a 77.95% increase, which could signal growing investor confidence or a reaction to the merger news.
Investors interested in further insights can find additional InvestingPro Tips for Akili, which may cover aspects such as shareholder yield, cash burn rate, and profitability forecasts. For those considering deeper analysis, InvestingPro offers more tips to help in evaluating Akili's potential as an investment. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for a comprehensive investment toolset.
For more detailed metrics and to explore these tips further, visit: https://www.investing.com/pro/AKLI. There are 10 additional InvestingPro Tips available that can provide investors with a broader understanding of Akili's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.