Offerpad, Inc. announced its plans of going public through a definitive merger agreement with a blank-check company on Wednesday 18th March 2021. The deal with Supernova Partners Acquisition Company, Inc. values the US home-selling platform at $3 billion along with bringing in an additional $650 million in gross proceeds.
Supernova is a publicly-traded Special Purpose Acquisition Company (SPAC) backed by Spencer Rascoff, an entrepreneur who has co-founded Pacaso, dot.LA, Hotwire, and who has also been a CEO at Zillow for a decade. He is working with Alexander Klabin, the CEO and founder of Ancient, who also co-founded Senator Investment Group.
Alongside them, there are investors like Robert Reid, an employee for 21 years in the Private Equity Group at Blackstone, and Micheal Clifton, a senior investment professional at The Carlyle Group. Upon the closure of this transaction, Offerpad, Inc. will become a publicly-traded company renamed Offerpad Solution Inc. It is expected to have the Class A common stock listed on New York Stock Exchange under the “OPAD” ticker.
Brian Bair is the founder and CEO of Offerpad, Inc., a leading tech-enabled real-estate company from Chandler, USA. This company has revolutionized the home buying and selling industry. The innovative end-to-end real estate experience on the Offerpad online platform streamlines the process for customers looking to buy and sell a home, makes it convenient and hassle-free. It is a 500-person company operating in over 900 cities, raised $975 million in equity and debt capital, completed around 30,000 transactions, and attained $7 billion gross transaction levels since its inception.
As per various SPAC analysts, this deal is like a warning shot from Spencer Rascoff towards his former employer Zillow which is currently valued at $35 billion.
In the combined company, the Offerpad shareholders are expected to roll over 100% of their equity to own 75% part of it. Brian Bair will remain CEO of the combined company and get 35% of voting power in it. Offerpad plans to use the raised capital to expand its presence beyond the current number of cities and earn about $1.4 billion in revenue this year. They expect to see the top end of their real-estate price range increase from $400,000 to $1 million.