Aurora Acquisition Files Prelim Proxy on $6.9B Better HoldCo Deal

Aurora Acquisition Corp.

Aurora Acquisition filed an S-4 outlining terms of its proposed merger with home ownership platform Better HoldCo,

The deal reflects an implied equity value for Better of approximately $6.9 billion and a post-money equity value of approximately $7.7 billion.

Announced in May, terms call for Better shareholders to receive $950 million in cash and the remainder in stock of the new company. Existing Better shareholders can elect to receive cash or stock, subject to proration depending on whether cash elections are above or below $950 million. Certain existing holders have committed to elect cash for at least a portion of their shares.

After payment of the $950 million and expenses related to the transaction, approximately $778 million will remain for general corporate purposes.

Aurora’s sponsor will voluntarily forfeit 50 percent of its private placement warrants and modify the remainder to be redeemable at $18 per share. Aurora’s sponsor also has agreed that 20 percent of its founder shares will be subject to price-based vesting. Major stockholders, members of Better’s board and key executives have agreed to enter into lock-up agreements as well.

Launched in 2016, Better’s fully digital homeownership platform offers mortgage, real estate, title, and homeowners insurance products all through one online platform. Read more.

Related Posts