Just five months ago things seemed uncertain for the SF based Opendoor, after the company has laid off 600 of its employees. Back then Opendoor CEO said that it is: “…necessary to ensure that we can continue to deliver on our mission and build the experience consumers deserve.”
What else can be done to build the experience consumers deserve? Oh, yes, a reverse merger with SPAC. SPACs are the new black these days.
Opendoor Labs Inc. today announced that it has entered into a definitive business combination agreement with Social Capital Hedosophia Holdings Corp. II (NYSE: IPOB) , a publicly traded SPAC, “to bring public a leading digital platform for residential real estate.”
We are energized by the opportunity to make our online, streamlined experience available to millions of homeowners every day.Eric Wu, ceo of oPENDOOR
The business combination values Opendoor at an enterprise value of $4.8 billion, representing 1.0x 2019 revenue.
These guys are my next 10x ideaCEO of SCH holdings corp. about Opendoor Labs
Upon completion of the transaction, Opendoor expects to have up to $1.5 billion in cash on its balance sheet to fund operations and support new and existing growth initiatives.
The transaction is expected to deliver up to $1.0 billion of gross proceeds, including the contribution of up to $414 million of cash held in Social Capital Hedosophia Holdings Corp ’s trust account from its initial public offering in April 2020.
The transaction is further supported by a $600 million PIPE at $10.00 per share, with $200 million from entities affiliated with SCH, including $100 million from Chamath Palihapitiya, Founder and CEO of SCH, $58 million from Hedosophia, and the remainder from existing Opendoor shareholders, Access Industries and Lennar, along with Opendoor management.
New investors to Opendoor via additional PIPE contributions include funds and accounts managed by BlackRock and Healthcare of Ontario Pension Plan. Existing Opendoor shareholders have agreed to roll 100 percent of their equity into the new company.
The transaction, which has been unanimously approved by the Boards of Directors of Opendoor and SCH, is subject to approval by SCH’s shareholders and other customary closing conditions.
Opendoor, which operates in 21 markets, says it sold more than 18,000 homes last year. Zillow said it sold
On this news IPOB stock is up 17% during pre-market session and it is expected to close at all time high price today.