Established in 2010, the company offers AI-powered learning automation and information intelligence for business and educational use
iLearningEngines to merge with Arrowroot Acquisition in $1.4bn deal. (Credit: Amr from Pixabay)
US-based iLearningEngines has agreed to merge with Arrowroot Acquisition, a special purpose acquisition company (SPAC), in a deal that values the combined entity at about $1.4bn.
The company offers artificial intelligence (AI)-powered learning automation and information intelligence for business and educational use.
As per the terms of the agreement, the combined entity will receive about $43m from Arrowroot Acquisition’s trust account, assuming no redemptions by the latter’s public stockholders.
Arrowroot Acquisition is sponsored by enterprise software investor Arrowroot Capital.
The deal also involves a minimum cash requirement of $100m, which is expected to be financed through various sources.
Upon the closing of the transaction with Arrowroot Acquisition, iLearningEngines will become a public company and will trade on the Nasdaq stock market.
Arrowroot CEO Matthew Safaii said: “We explored dozens of candidates for our first SPAC investment, searching for the next category killer, a $1 billion plus business that could be the next $10 billion company.
“We believe we found that in iLearningEngines.
“This is a company with over 100,000 engineering research and development hours invested in creating one of the biggest independent AI focused software platform companies in the world.”
Established in 2010, iLearningEngines makes use of AI and machine learning to develop intelligent ‘knowledge clouds’ from internal and external content and data of organisations. This helps in developing a central repository of all enterprise intellectual property.
The knowledge is then distributed into enterprise workflows to power autonomous learning, intelligent decision making, and process automation.
Currently, iLearningEngines is said to serve 12 core verticals, including oil and gas, education, industrials, healthcare, and insurance.
iLearningEngines CEO and founder Harish Chidambaran said: “As an early pioneer in enterprise AI and its application in learning and process automation, we believe iLearningEngines is in a category of one – owning a unique space with first mover advantage and significant moats built around specialised learning and engagement data sets.
“We are excited to be partnering with Arrowroot given their expertise in growing enterprise software businesses.
The transaction is subject to approval by the SPAC’s shareholders alongside other customary conditions.