Softbank-Backed Getaround Negotiates a Potential $1.7bn SPAC Merger

Aug 26, 2021 | News

SoftBank Group-backed car-sharing startup Getaround is in talks to go public through a merger with special-purpose acquisition company, Altitude Acquisition Corporation.

The company has secretly asked investors to participate in the deal at a valuation of about $1.7bn through a private placement (PIPE), one source said.

Sources warned that terms could change and said the deal was uncertain. They asked not to be identified because the negotiations were not made public.

Altitude Acquisition Corp declined to comment. Getaround did not immediately respond to the request for comment.

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Founded in 2009, San Francisco-based Getaround operates a peer-to-peer car-sharing marketplace where vehicle owners can rent a car hourly or daily. It operates in more than 100 cities in the United States and more than 170 locations in Europe and has 6m users worldwide. One of its major competitors, Turo Inc, went public this month.

According to PitchBook data, Getaround raised more than $800m in previous funding rounds from investors such as Softbank and Menlo Ventures, to more than $1bn in September 2020.

Like many other travel agencies, Getaround suffered when the COVID-19 pandemic broke out last year. Customer demand fell by as much as 75%. The business recovered as the pandemic restrictions were relaxed and travel resumed.

Altitude raised $300m in an IPO on the Nasdaq in December 2020 with the aim of merging with a travel-related company.

 

Source: India News Republic

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