SmartRent goes public in $2.2 billion SPAC merger
US: SmartRent, a leading provider of smart home and smart building automation for property owners, managers, developers, homebuilders and residents, has completed its business combination with special purpose acquisition company [SPAC] Fifth Wall Acquisition Corp. I., sponsored by an affiliate of venture capital firm Fifth Wall.
As a result of the business combination, SmartRent has changed its name to SmartRent, Inc, and the company will trade on the New York Stock Exchange under the ticker symbol “SMRT”.
The merger was previously announced back in April.
SmartRent CEO Lucas Haldeman said: “We are thrilled to have reached this important milestone in our company’s history and are excited to embark on this next phase of our journey to make smart home technology accessible for everyone. We are experiencing strong demand for our value-enhancing, open-architecture and hardware-agnostic operating system, that provides cost savings and additional revenue opportunities to property owners while helping them achieve their sustainability goals.
“This transaction will allow us to accelerate our growth strategy, and we look forward to our continued partnership with Fifth Wall as we further extend our leadership in this rapidly growing market,” he added.
Brendan Wallace, CEO of Fifth Wall Acquisition Corp. I., said: “Before SmartRent, the real estate industry lacked an integrated software management platform that could deliver a smart home experience for real estate operators. SmartRent has since become the de facto smart platform for some of the nation’s largest real estate owners and we are proud to be their partner during this next phase of growth.”
SmartRent has received approximately $450 million in cash, net of transaction fees and expenses, which includes $155 million from a previously announced private placement of common stock [PIPE]. The PIPE is anchored by a diverse group of 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 L.P., Long Pond Capital, LP, and Conversant Capital LLC.
Founded in 2017, the company says that it will use the proceeds of the transaction to invest in growth in the emerging multibillion-dollar smart building management market.
Since April, SmartRent has made a number of significant product and growth announcements, including an expansion into the student housing market, an exclusive integration with map visualisation technology leader Engrain, and the launch of Smart Intercom and Alloy Access Solo, to expand its access control offerings and ability to transform apartments into connected communities. The company has also grown to have customers, which collectively own an aggregate of 3.5 million rental units.