Insurance technology company Roadzen has agreed to merge with special purpose acquisition company (SPAC) Vahanna Tech Edge Acquisition I to become a publicly listed company.

The deal implies a pro forma equity value post-closing of about $965m. Once the transaction closes, Roadzen is expected to get listed on the Nasdaq.

For the insurtech, the merger reflects a pre-money equity value of nearly $683m.

Besides, the estimated cash proceeds from the deal are anticipated to include the SPAC’s $204m of cash held in trust, assuming no redemptions.

The cash proceeds are expected to finance Roadzen’s organic growth initiatives and M&A strategy.

Roadzen seeks to transform global auto insurance by leveraging advanced artificial intelligence (AI).

The firm expects to achieve its goal by bringing together computer vision, telematics, AI and continually updated data sources to improve auto insurance products and claims processing.

Roadzen CEO and founder Rohan Malhotra said: “We set out with a bold and ambitious vision – to build the world’s leading technology company at the intersection of insurance and mobility.

“We are committed to our long-term vision and believe this is a firm next step in that journey. Our team, technology, business strategy and an ecosystem of world-class partners will create significant and strong growth for years to come.”

Following the closing of the deal, the existing shareholders of Roadzen are anticipated to own 73.2% of the combined company, assuming none of the SPAC’s public shareholders elect to redeem their shares.

The deal, which is subject to approval by the SPAC’s shareholders and Roadzen’s shareholders along with customary conditions and regulatory approvals, is expected to close in Q2 2023.

The transaction is also subject to satisfaction of a minimum cash condition of $50m.