SmartRent goes Public with Fifth Wall Acquisition Corp Merger

Josh Fraser Jun 18th, 2021 / Acquisition, Estated Episodes, Industry News, Fifth Wall, Smartrent

The merger between SmartRent and Fifth Wall Acquisition Corp (FWAA) with SmartRent going public can bring a combined equity value of $2.2 billion.


Earlier this year, Fifth Wall Acquisition Corp, an affiliate of Fifth Wall, had raised $345 million in an initial public offering (IPO). Before this merger, Fifth Wall had invested in SmartRent through one of its funds. With this merger, SmartRent is expected to go public. The combined equity value of this merger is expected to be $2.2 billion. Once this transaction is done, public trading in the new combined company will begin. The new company created, a combination of SmartRent and FWAA will hold approximately $513 million in cash at the time of closing. This includes the $345 million by a February 5, 2021 IPO of Fifth Wall held earlier. Once the merger is complete, approximately 73% of shares of the new pro forma company will be owned by the existing shareholders of SmartRent.

The Board of Directors of both SmartRent and FWAA has unanimously approved this merger. Once the shareholders of both parties approve, SmartRent will close its operations in the third quarter of 2021 after the standard closing conditions are found to be complied with.

Some Private Investment in Public Equity (PIPE) sponsors of this merger include top-tier investors like Lennar Corp., Starwood Capital Group LLC, and Blackstone Group Inc. Lucas Haldeman, who founded SmartRent in Jan 2017, was working as Chief Technology Officer at Colony Starwood Homes. This later came to be known as Starwood Waypoint Homes. Invitation Homes and Starwood Waypoint Homes merged later. The former was one of the largest owners of single-family rental homes. Lucas Haldeman had envisioned giving many rental units the same smart-home features which homeowners widely use. That is the crux at the creation of SmartRent.

Once this merger takes place, it is expected to be one of the largest of its kind between a property technology (proptech) company and a special-purpose acquisition company (SPAC). Such SPACs have become quite popular, particularly with proptech firms, within the last year as they enable private companies to go public more quickly.

SmartRent, debuting on NASDAQ as of April 26, 2021, is a United States property technology (proptech) enterprise founded in January 2017 and is based in Scottsdale, Arizona. It has recently merged with Fifth Wall Acquisitions Corp, one of the first and largest venture capital firms with an advisory-based approach to serving the diverse and dynamic needs of companies on the brink of major change. These needs are served through technological innovation.

SmartRent creates home automation solutions – hardware and software aimed at helping construction industry folks, builders, people seeking out rental properties, and real estate managers with their day-to-day operations by enabling them to automate, manage and protect their operations processes.

As part of its solutions, SmartRent designs apps that allow unconditional visibility and control of community assets to its property owners and managers as well as home-control apps for residents, which enable them to perform varied tasks on just one platform, delivering increased revenue opportunities. Simply put, SmartRent provides its clients with ease of daily operations involving the construction industry, real estate, and the property market. Their software is backed by an operating system based on the Internet of Things (artificial intelligence). This software's main objective is to simplify the daily management functioning of real estate managers, developers, and property owners.

Using SmartRent apps, household utilities like thermostats, plumbing, and security can be monitored, controlled, and changed by landlords and tenants alike, using a smartphone or a computer.

To date, SmartRent has 850,000+ Internet of Things (IoT) devices that have acted as quick and easily implementable solutions to numerous customers. Their customer outreach speaks for itself: even during the pandemic, more than 1000 new multifamily communities used their software applications. Their applications are versatile, allowing users varied functions on one platform and, more importantly, take less than a minute to be activated.

This is a merger between SmartRent and Fifth Wall Acquisition Corp (FWAA). To speak about FWAA, they are a top-tier special purpose acquisition company (SPAC) and one of the largest venture capital firms that have spearheaded an advisory-based approach. They advise corporates on Built World technology and make enterprises undergoing massive change future-ready through technological innovation. Fifth Wall has built a comprehensive, game-changing platform that caters to the constantly dynamic and diverse needs of industries undergoing great change.

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