Virtual Therapeutics Completes Acquisition of Akila

Virtual Therapeutics announced today that it has completed its tender offer to acquire all of the outstanding shares of Akili (Nasdaq:AKLI).

The company initially commenced the tender offer at a price of $0.4340 per share on June 3. The tender offer expired at one minute after 11:59 p.m. ET on July 1. As of the expiry date of the valid tender offer, nearly 70 million shares (88.2% of Akili’s outstanding shares) had been tendered.

Following the completion of this offering, Virtual Therapeutics plans to merge its Alpha Merger Sub with Akili today, July 2. As a result, Akili will become a wholly owned subsidiary of Virtual Therapeutics.

Akili is developing a video game called EndeavorRx for children with attention deficit hyperactivity disorder (ADHD). The prescription treatment is delivered through a video game as a way to improve attentional function as measured by computerized tests.

Virtual Therapeutics develops digital health solutions for mental health and mental fitness, leveraging expertise in game development. It combines modern gameplay mechanics with proven therapeutic techniques.

“The completion of this acquisition provides us with the foundation to build a leading digital health company that can bring new behavioral health services to as many patients as possible,” said Dan Elenbaas, co-founder and CEO of Virtual Therapeutics. “We look forward to leveraging Akila’s expertise and strengths as we embark on this next phase of Virtual Therapeutics’ growth.”

How Akili got to this point

The company has hit some snags over the past year, reflecting a potential trend in the digital therapy space. Other DTX companies have also struggled, with Better Therapeutics ceasing operations in March and then selling its assets in May. Pear Therapeutics similarly scaled back operations after filing for bankruptcy last year.

Meanwhile, Akili last year transitioned to an over-the-counter business model, cutting its workforce by about 40%. That included eliminating its field sales team and market access team.

The move comes after a 30% reduction in its workforce in January 2023, bringing the total to 46 employees. Akili is not alone in this, as many medical technology companies have been cutting staff over the past few years.