SmartRent To Go Public in $2.2 Billion Merger with Fifth Wall SPAC

Separately, some of the largest apartment-building owners and housing developers in the U.S.—which are also customers of SmartRent—have agreed to invest a total of $155 million in the startup, according to people familiar with the matter. This group includes Blackstone Group Inc., Starwood Capital Group LLC, Lennar Corp. and Invitation Homes Inc.

Fifth Wall Acquisition Corp., the VC firm’s first SPAC, raised about $345 million in an initial public offering earlier this year. The merger would be one of the largest deals thus far involving a proptech firm and a SPAC, according to the publication.

SmartRent sells smart house technology to building owners and developers, including major landlords like Blackstone Group, Starwood Capital Group and Lennar and Invitation Homes. Those property owners have reportedly agreed to invest $155 million in the startup.

SmartRent technology helps landlords monitor thermostats, utilities, security and plumbing from a computer or smartphone. Tenants can use apps that support these features, too.

SPACs have grown in popularity, raising $83 billion last year across 248 blank-check firms. These companies have no underlying assets and are an alternative to the traditional initial public offering process.

Fifth Wall has thus far launched three SPACs, with the latest — announced earlier this week — targeting proptech firms outside the U.S. The firm has invested in more than 40 proptech startups since 2016.

Source: The Real Deal