Smart-lock maker Latch going public in $1.6 bln Tishman Speyer-backed deal (updated)

Latch

25/01/2021 20:24

(Adds quotes from TS and Latch executives, and updates shares)
    Jan 25 (Reuters) - Smart-lock maker Latch Inc said on Monday
it has agreed to go public through a merger with TS Innovation
Acquisitions Corp  TSIA.O , a blank-check acquisition company
backed by U.S. property developer Tishman Speyer, in a deal
valuing it at $1.56 billion. 
    Latch will receive around $510 million in cash, including
$190 million from investors such as Chamath Palihapitiya,
BlackRock Inc  BLK.N , D1 Capital Partners and Fidelity
Management & Research Company LLC.  urn:newsml:reuters.com:*:nPn1bSWWPa
    Shares of TS Innovation, a special purpose acquisition
company (SPAC) which raised $300 million in its November initial
public offering, were up 43.9% at $14.91 apiece late Monday
afternoon. 
    Founded in 2014, Latch has partnered with Alphabet Inc's
 GGOGL.O  Google to develop smart thermostats and United Parcel
Services Inc  UPS.N  to make smart locks in New York apartment
buildings.
    "Real estate as an industry has been technology resistant
for decades. We're now hitting the early stages of the
disruption cycle. But it's just the early stages and the right
prop tech companies are going to make a revolutionary difference
to our industry," TS Innovation Chairman and Chief Executive Rob
Speyer said in an interview. 
    SPACs have emerged as a popular route for companies seeking
to go public with less regulatory scrutiny and more certainty
about valuation than a traditional IPO.
    Unlike a regular IPO, a SPAC merger allows the company to
use forward financial projections to lay out its pitch to
investors, according to CEO Luke Schoenfelder.
    "The SPAC structure enabled us to talk about our business
and really reflect the growth that we've been experiencing as
opposed to just looking at historical financials but to really
be able to paint the growth picture," Schoenfelder said. 
    The deal is expected to close in the second quarter. Latch
will be listed on the Nasdaq under the ticker symbol "LTCH".  

 (Reporting by Sohini Podder in Bengaluru and Joshua Franklin in
Miami; Editing by Ramakrishnan M. and Richard Chang)
 ((sohini.podder@thomsonreuters.com;))