Zapata AI to become public through Andretti Acquisition combination

Zapata Computing and Andretti Acquisition (WNNR) announced that they have entered into a definitive business combination agreement that will result in Zapata AI becoming a U.S. publicly listed company. Upon closing of the transaction, the combined company is expected to be listed on the New York Stock Exchange under the new ticker symbol (ZPTA). Zapata AI spun out of Harvard University in 2017 with a mission to create value for enterprises with generative AI and other advanced algorithms that leverage quantum techniques. The transaction values Zapata at an implied pre-money equity value of $200M, with existing Zapata shareholders set to roll over 100% of their equity into the combined entity, or 20M shares at a price of $10.00. Andretti Acquisition Corp.’s sponsors and certain investors that own or have the right to receive founder shares will own a combined 5.8M shares, or an implied value of approximately $58M. Andretti Acquisition Corp.’s public shareholders currently hold approximately 7.9M shares, all of which are subject to redemption. The pro forma equity value of the combined company is expected to be between $281M and $365M, depending on the level of redemptions. The boards of directors of each of Zapata and Andretti Acquisition Corp. have approved the transaction. The transaction will require the approval of the stockholders of Andretti Acquisition Corp. and is subject to satisfaction or waiver of the conditions stated in the business combination agreement and other customary closing conditions, including the receipt of certain regulatory approvals. The transaction is expected to close in the first quarter of 2024.