SmartRent, Backed by Amazon (AMZN), to Go Public in a $2.2 Billion Merger with Fifth Wall SPAC (FWAA)

April 22, 2021 9:42 AM EDT

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SmartRent, a home tech startup backed by Amazon (NASDAQ: AMZN), has agreed to a deal to go public through a SPAC merger with Fifth Wall Acquisition (NASDAQ: FWAA), a blank-check company backed by venture capital firm Fifth Wall, which is managing $2.5 billion.

The merger valued the company at about $2.2 billion, SmartRent said in a statement. The company develops home operating systems, which enable property owners, operators, and developers to decrease the complexities of property management, lower operating costs, and increase revenue.

"SmartRent's comprehensive platform has a clear technological edge on competitors and significant growth potential; and Fifth Wall, through its extensive investor and partner network, is uniquely positioned to help us expand our capabilities globally. Fifth Wall is a trusted investor and visionary. With its track record of supporting and investing in leading proptech companies, the Fifth Wall team understands technology, markets, and real estate—including what the real estate industry will adopt next,” Lucas Haldeman, a founder and CEO of SmartRent, said.

SmartRent said that it witnessed an oversubscribed $155 million PIPE, led by SmartRent Customers, as well as participation from Starwood Capital Group, Lennar, Invitation Homes, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners L.P., Long Pond Capital, LP, and Conversant Capital LLC.

The blank-check company raised $345 million through an initial public offering in February. Speaking about the deal, Brendan Wallace, CEO of Fifth Wall Acquisition, said:

"Through a consistent stream of early investments in category-leading real estate technology companies, Fifth Wall has identified a pattern of technology adoption in the real estate industry that is playing out to SmartRent's benefit. As an early winner in the eyes of some of the largest national real estate owners, SmartRent has rapidly become the industry standard solution.”

The SPAC deal with Fifth Wall Acquisition Corp I will provide SmartRent with $513 million in gross proceeds. The company is on its way to becoming profitable by 2022.

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