Palihapitiya-Led SPAC Said to Discuss Akili Interactive Deal

(Bloomberg) -- Social Capital Suvretta Holdings Corp. I, a special purpose acquisition company led by Chamath Palihapitiya, is in talks to merge with Akili Interactive, a startup that specializes in technology-based cognitive therapies, according to people with knowledge of the matter.

A transaction that values the combined entity at more than $800 million has been discussed, said one of the people, requesting anonymity because the talks aren’t public. It’s possible terms change or that a deal is not ultimately reached. 

Representatives for the Social Capital Suvretta SPAC and Akili didn’t respond to multiple requests for comment. 

Akili’s treatments are delivered through “captivating action video-game experiences,” its website shows. A key offering is a digital therapeutic, and the company says studies have shown that it improves measures of attention in children diagnosed with attention-deficit hyperactivity disorder, also known as ADHD.

Led by Chief Executive Officer Eddie Martucci, Akili’s investors include Baillie Gifford, Temasek Holdings, Shire, Amgen Ventures, Neuberger Berman and Jazz Venture Partners, its website shows. 

The company was last valued at $410 million after a May funding round, according to PitchBook data. PureTech Health Plc said at the time that it owned about 23.4% of Akili.

Read more: PureTech-Backed Akili Secures $160m in Financing

Akili has said it’s advancing clinical research of other digital treatments that may address impairments in cognitive functioning linked to conditions including autism spectrum disorder, major depressive disorder and multiple sclerosis.

Social Capital Suvretta Holdings Corp. I, which counts Palihapitiya as its CEO and Kishen Mehta as president, raised $250 million in a June initial public offering. 

Palihapitiya’s Social Capital and Suvretta Capital Management raised four vehicles with different health-care sector focuses. Its first -- the vehicle in talks with Akili -- is focused on neurology. Another vehicle, Social Capital Suvretta Holdings Corp. III, is in talks to merge with ProKidney, Bloomberg News earlier reported. 

Read more: Palihapitiya SPAC Is Said to Be in Merger Talks With ProKidney

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