Social Capital Hedosophia Holdings Corp. II Takes Opendoor Public by SPAC Deal

Opendoor to go public via merger in $4.8B deal

Founded in 2014, Opendoor has reinvented the real estate transaction, offering an on-demand, digital experience to buy and sell a home.

Opendoor said the deal will result in $1 billion in cash proceeds, including a $600 million fully committed public investment in private equity (PIPE) and $414 million in a trust account held by the special goal vehicle.

Today, Social Capital Hedosophia II, the blank-check company associated with investor Chamath Palihapitiya, announced that it will merge with Opendoor, taking the private real estate startup public in the process. Last year, the company sold more than 18,000 homes, generating $4.7 billion in revenue. The deal then takes the private company public.

Social Capital Hedosophia is seeking to raise $500 million for its newest blank-check company, according to people with knowledge of the matter.

Several private companies, including electric carmaker Fisker, health-care services provider MultiPlan and sales and marketing services provider Advantage Solutions Inc, have gone public through a SPAC deal this year. It now operates in 21 markets across the U.S. The management team, led by founder and CEO Eric Wu, will stay with the company. SPAC deals previous year hit $24.8 billion. Social Capital II shares jumped nearly 35 per cent yesterday. Opendoor perfectly embodies this vision. The transaction is further supported by a $600 million PIPE at $10.00 per share, with US$ 200 million from entities affiliated with Social Capital Hedosophia, including US$ 100 million from Chamath Palihapitiya, US$ 58 million from Hedosophia, and the remainder from existing Opendoor shareholders, Access Industries and Lennar Corporation, along with Opendoor management.

The transaction values Opendoor at $4.8 billion and will provide up to $1 billion in proceeds to fund Opendoor's growth initiatives. New investors to Opendoor via additional PIPE contributions include funds and accounts managed by BlackRock and Healthcare of Ontario Pension Plan (HOOPP). Notably all the cash will flow to Opendoor itself, with shareholders in the company "rolling 100 percent of their equity into the combined company", per a notice. Along with the transaction, Adam Bain, former Twitter COO and founder of 01 advisors, will join the board, CNBC reports.



Latest news

Lady Gaga believes that all Americans are born with white supremacy
Gaga performed 911 at the MTV VMAs earlier this month, as part of a medley with her previous chart-topping single Rain On Me . Insane inquired. "I presume everyone possesses a various sensation concerning a square".

AT&T considers cellphone plans subsidized by ads
Fiber or fiber optics are thin cables often installed underground that allow companies to deliver internet services to homes. Stankey himself admitted that he doesn't know if the company can use that external data for ads "in perpetuity".

Kanye West Urinates On Grammy Award In Battle For Masters OwnershipGuardian Life
Kanye tweeted out to other musicians to ask for their support in his mission. West says he won't release new music until he is released from his deals.

National lockdown 'last line of defence' as Lancashire faces tougher measures
Mr Hancock confirmed the government would be "making further announcements" on localised action later in the day. The North East was most recently locked down and Lancashire will be added too, with the exception of Blackpool.

Big Ten’s back, leaving the Pac-12 in awkward football limbo
Still, there seemed to be significant roadblocks in California until the Pac-12 released its statement late Wednesday afternoon. Conference officials must also consider the concerns of the #WeAreUnited movement that arose before the season was postponed.

Other news