Nextdoor to go public in $4.3 bln merger with Khosla-backed SPAC (updated)

Nextdoor Holdings

06/07/2021 12:34

(Adds details from statement)
    July 6 (Reuters) - Nextdoor, a social network that connects
neighbors, said on Tuesday it would merge with a blank-check
company backed by Khosla Ventures in a deal valued at $4.3
billion.
    The deal with special purpose acquisition company (SPAC)
Khosla Ventures Acquisition Co II  KVSB.O  includes a private
investment of $270 million from Baron Capital Group, Dragoneer,
accounts advised by T. Rowe Price Associates and Cathie Wood's
ARK Invest.
    Nextdoor Chief Executive Officer Sarah Friar and existing
investors Tiger Global and Hedosophia will also invest in the
deal, which will generate proceeds of about $686 million for the
combined company.
    Founded in 2011, the San Francisco-based company allows
members to use its mobile app and website to seek advice from
their neighbors on anything from babysitters to organizing local
sports clubs or dealing with rodent infestation.
    A SPAC is a shell company that seeks to merge with a private
company and in the process takes it public. SPAC mergers gained
popularity last year, but are experiencing a slowdown due to
weak investor appetite and greater regulatory scrutiny .
    The merger, which comes against the backdrop of a lull in
dealmaking due to weak investor appetite and greater regulatory
scrutiny in the SPAC market, is expected to close in the fourth
quarter this year.
    Khosla Ventures Acquisition Co II raised $400 million in its
IPO.

 (Reporting by Niket Nishant in Bengaluru; Editing by Aditya
Soni and Vinay Dwivedi)
 ((Niket.Nishant@thomsonreuters.com;))