The company initially commenced its tender offer at a price of $0.4340 per share on June 3. It expired at one minute after 11:59 p.m. EDT on July 1. As of the expiration date, nearly 70 million shares (88.2% of Akili’s outstanding shares) were validly tendered.
Following the completion of this offer, Virtual Therapeutics plans for its Alpha Merger Sub subsidiary to merge with Akili today, July 2. As a result, Akili will become a wholly owned subsidiary of Virtual Therapeutics.
Akili develops the EndeavorRx video game for children with attention deficit hyperactivity disorder (ADHD). The prescription treatment is delivered through a video game experience as a way to improve attention function as measured by computer-based testing.
Virtual Therapeutics develops digital health solutions for mental health and mental fitness, leveraging game development expertise. It combines modern gameplay mechanisms with proven therapeutic techniques.
“The completion of this acquisition provides a foundation for us to build a leading digital health company that is capable of bringing new behavioral services to as many patients as possible,” said Dan Elenbaas, co-founder and CEO of Virtual Therapeutics. “We look forward to leveraging Akili’s expertise and strengths as we embark on this next stage of growth for Virtual Therapeutics.”
How Akili got to this point
The company hit some snags over the past year or so, reflecting a potential trend in the digital therapeutics space. Fellow DTX companies also struggled, with Better Therapeutics ceasing operations in March, then selling its assets in May. Pear Therapeutics similarly scaled down operations after filing bankruptcy last year.
Akili, meanwhile, shifted toward a non-prescription business model with over-the-counter offerings last year, reducing its workforce by approximately 40%. That included the elimination of the company’s field sales force and market access team.
That move followed a January 2023 workforce reduction of 30%, which totaled 46 workers. Akili is not alone, as many medical technology companies slashed their headcounts over the past couple of years.
