SoftBank-backed home-selling platform Opendoor is going public through a merger with a blank-check company led by venture investor Chamath Palihapitiya in a deal that will value the combined entity at $4.8 billion, the companies said on Tuesday.
Opendoor buys properties from sellers and makes repairs, at a service charge, and then lists them for sale. As part of the deal with Social Capital Hedosophia Holdings Corp II, Opendoor will get $1 billion cash, including $600 million from investors such as BlackRock and Healthcare of Ontario Pension Plan and Palihapitiya.
Social Capital shares jumped 21% in pre-market trade.
SPAC acquisitions in 2020 have jumped to a record $27.4 billion, including debt, with a further $35.2 billion of deals announced and pending completion, according to SPAC Research. SPAC deals last year hit $24.8 billion.
Several private companies, including electric carmaker Fisker, healthcare services provider MultiPlan and sales and marketing services provider Advantage Solutions Inc, have gone public through a SPAC deal this year.
Other high-profile investors like Bill Ackman and Michael Klein have also raised billions through their SPACs this year. Ackman’s SPAC Pershing Square Tontine Holdings Ltd raised $4 billion in its IPO in July, making it the largest SPAC IPO.
In 2018, SoftBank’s Vision Fund invested $400 million in Opendoor, which was founded in 2014. (Reporting by Niket Nishant in Bengaluru; Editing by Bernard Orr)
Washington State Investment Board, Olympia, disclosed five new private equity commitments totaling...
Private equity firm Hillhouse Capital Group is raising a fund targeting over 20 billion yuan (2.32...
Playboy magazine owner Playboy Enterprises is exploring options that include going public through...