Softbank-backed Getaround in SPAC merger talks -sources

Altitude Acquisition

25/08/2021 20:20

By Krystal Hu
    Aug 24 (Reuters) - Getaround, a car-sharing startup backed
by SoftBank Group Corp  9984.T , is in talks to go public
through a merger with special purpose acquisition company (SPAC)
Altitude Acquisition Corp  ALTU.O , people familiar with the
matter said.
    The company has confidentially sought investors to
participate in the deal through a private placement in public
equity, or PIPE, at a valuation of around $1.7 billion, one of
the sources said.
    The sources cautioned that terms could change and said there
was no certainty of a deal. They asked not to be identified
because the negotiations are not public. 
    Altitude Acquisition Corp declined to comment. Getaround did
not immediately respond to requests for comment.
    Founded in 2009, San Francisco-based Getaround operates a
peer-to-peer car-sharing marketplace that allows vehicle owners
to rent out their cars on an hourly or daily basis. It operates
in over 100 U.S. cities and more than 170 European locations,
with 6 million users globally. One of its major competitors,
Turo Inc, registered for an initial public offering this month.
    Getaround has raised more than $800 million in previous
fundraising rounds from investors including Softbank and Menlo
Ventures, and was last at more than $1 billion in September
2020, according to PitchBook data.
    Like many other travel businesses, Getaround suffered when
the COVID-19 pandemic spread last year. It saw customer demand
drop by as much as 75%. Its business has recovered as pandemic
restrictions eased and travel resumed.
    Altitude raised $300 million in an IPO on Nasdaq in December
2020, seeking to merger with a travel-related business.

 (Reporting by Krystal Hu in New York; Editing by David
Gregorio)
 ((Krystal.Hu@thomsonreuters.com;))