Fifth Wall Acquisition in an 8-K filing today said shareholders voted overwhelmingly in favor of the SPAC’s merger with SmartRent.
The filing did not mention redemptions, if any. The SPAC has traded well above $10 since the deal was announced in late April and closed yesterday at $11.64, making redemptions unlikely.
The equity value of the combined company in April was estimated at $2.2 billion, assuming no redemptions.
Post-merger, the company is expected to have up to approximately $513 million in cash, including $345 million held in the SPAC’s trust from its February IPO. The transaction is also supported by a $155 million PIPE at $10 per share from leading real estate companies, SmartRent customers, and institutional financial investors, including Starwood Capital Group, Lennar, Invitation Homes, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners, Long Pond Capital, and Conversant Capital.
After the merger, SmartRent’s existing shareholders are expected to own approximately 73 percent of the pro forma company at close.
SmartRent and Fifth Wall also agreed to long-term interests. The founder shares of Fifth Wall’s sponsor are locked for up to three years. Additionally, all shares held by SmartRent’s existing shareholders will be subject to a six-month lockup post-closing.
SmartRent is a home automation company developing software and hardware for property owners, managers and homebuilders. Read more.
