Palihapitiya SPAC in talks to merge with Temasek-backed Akili Interactive: sources

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

A transaction that values the combined entity at more than US$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 US$410 million after a May funding round, according to PitchBook data. PureTech Health said at the time that it owned about 23.4 per cent of Akili.

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 US$250 million in a June initial public offering. Palihapitiya's Social Capital and Suvretta Capital Management raised 4 vehicles with different healthcare 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.

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