Smart-Lock Maker Latch, and YML Client, Files for IPO and Valued at $1.56 billionBy YML
Latch Inc., a maker of smart locks and building-management software, plans to go public by merging with a special-purpose acquisition company backed by a real-estate giant, the latest startup looking to use a so-called blank-check vehicle to cash in on strong investor interest in tech-enabled businesses.
Today, more than 1 in 10 new apartments in the U.S. have Latch smart locks. YML is proud to have built the first Latch app, providing safe and secure access to millions of homeowners nationwide.
The merger will unite venture-capital-backed Latch with TS Innovation Acquisitions Corp. TSIA -9.00% , a special-purpose acquisition company sponsored by New York commercial real-estate firm Tishman Speyer Properties LP that raised $300 million late last year, the companies said Monday. The deal, which values Latch at $1.56 billion, is expected to close in the second quarter, and Latch is expected to trade on the Nasdaq under the symbol LTCH, they said.
SPACs have increasingly gained favor over the past year among companies looking to go public and large investors looking to partner with them. These SPACs, which go public with no assets and then merge with private companies, raised a record $82.1 billion in 2020, more than six times the prior year’s total, according to Dealogic data. Nearly 300 SPACs are seeking deals, armed with about $90 billion in cash.
Read the full story on The Wall Street Journal.