SmartRent 1
SmartRent is the first company Fifth Wall has taken public through a SPAC

SmartRent goes public as $2.2bn SPAC deal completes

 | 

Karl Tomusk

Fifth Wall’s first SPAC has completed its merger with SmartRent, taking the smart home tech provider public on the New York Stock Exchange.

SmartRent gives property owners, managers and residents the ability to control all of their smart home devices with one platform.

Since announcing the merger with Fifth Wall Acquisition Corp I (FWAA) in April, the company has expanded into student housing and launched an in-house intercom and access control system.

Having grown to 182 customers, SmartRent’s clients own 3.5 million rented homes in total and include 15 of the 20 largest multifamily residential owners in the US.

SmartRent received about $450m in cash through the transaction, which included $155m in a private placement from investors including Starwood Capital, Lennar, Invitation Homes  and Koch Real Estate Investments.

Lucas Haldeman, CEO of SmartRent, said: “We are thrilled to have reached this important milestone in our company’s history and are excited to embark on this next phase of our journey to make smart home technology accessible for everyone.

“This transaction will allow us to accelerate our growth strategy, and we look forward to our continued partnership with Fifth Wall as we further extend our leadership in this rapidly growing market.”

Haldeman and the rest of the existing senior management team will continue to lead the combined company.

How have property SPACs performed?

SmartRent’s share price has steadily risen since the merger with FWAA was announced on 22 April, increasing from $10.39 to $12.48 over the last four months.

Other property SPACs experienced an initial burst of investor enthusiasm following a merger announcement, but their share prices have since fallen below those first peaks.

SpacSharePrice

Share price performance for Opendoor, Matterport and Latch (click to expand) Source: Investing.com

When Matterport announced its merger with Gores Holdings VI at the start of February, its share price quickly jumped from $10.69 to $25.03. Since the completion of the merger on 23 July, the company has traded at between £12.90 and $16.73 – below its peak but still above pre-announcement levels.

Latch had a similar trajectory, rising from $10.12 to $16.79 in the days following its merger announcement in January before falling back down to $11.40 at the time of writing.

Opendoor’s share price has fallen 43.8% since the company went public at the end of December 2020, underperforming the wider NASDAQ market.

The question for SmartRent is whether it can sustain that steadier but more consistent upward trajectory in its share price.

Ones to watch

  • WeWork: having scrapped its IPO and replaced its leadership team, WeWork is in the middle of a turnaround strategy. The flexible office giant is eyeing another listing through a SPAC merger with BowX Acquisition Corp, which would value it at about $9bn.
  • Fifth Wall: with its first SPAC merger now complete, Fifth Wall has two follow up blank cheque companies for which to find target companies – Fifth Wall Acquisition Corp II and III.
  • Altus Power: CBRE Acquisition Holdings will take renewable energy provider Altus Power public by the end of the year in a deal that marks the first time that a publicly-traded US corporate has undertaken a SPAC merger.

Your comments

Read our comments policy here