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Amazon-backed home tech startup SmartRent to go public in over $2 billion SPAC deal

Published 2021-04-22, 08:45 a/m
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(Reuters) - Amazon-backed home technology solutions provider SmartRent.com Inc said on Thursday it had agreed to go public through a merger with a blank-check firm backed by venture capital firm Fifth Wall, valuing the equity of the combined company at around $2.2 billion.

The deal with Fifth Wall Acquisition Corp I is expected to provide the merged entity with $513 million in gross proceeds, comprising about $155 million from investors including Koch Real Estate Investments, Baron Capital Group, Lennar Corp (NYSE:LEN) and Invitation Homes.

SmartRent develops tech products for property owners and homebuilders that automate daily operational processes such as parking management, locks and thermostat operation. The Scottsdale, Arizona-based firm's customers include Lennar, Invitation Homes and Essex Property Trust Inc (NYSE:ESS).

FWAA, a special purpose acquisition company (SPAC) raised $345 million through an initial public offering in February.

SPACs are publicly listed shell companies that raise funds to take a private company public through a merger at a later date, allowing the private firms to sidestep a traditional IPO to enter public markets.

J.P. Morgan Securities LLC and Morgan Stanley (NYSE:MS) are acting as co-financial advisers to SmartRent while Deutsche Bank (DE:DBKGn) Securities and Goldman Sachs (NYSE:GS) are acting as capital markets advisors to Fifth Wall Acquisition Corp I.

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