Latch plans to go public by merging with a special-purpose acquisition company backed by Tishman Speyer, according to the Wall Street Journal. The deal values the PropTech startup at $1.56 billion, and is expected to close in the second quarter.
- What they do: The startup manufactures smart locks for apartment buildings, which can be opened with a cellphone app, cards, or time-limited access codes. This allows residences to become more easily accessible for maintenance staff, package carriers and tenants.
- Dig Deeper: CEO Luke Schoenfelder said 2020 was Latch’s strongest sales year, helped by the pandemic’s spurring interest in tools such as contactless door and elevator controls. Latch has more than 200 employees.
- Flashback: Latch most recently raised $56 million from Avenir Growth Capital in August 2019, valuing the company at $400 million. Brookfield perviously led the company’s $70 million Series B round last year in 2018.
- Watching the Street: Latch is expected to trade on the Nasdaq under the symbol LTCH. Shares of TS Innovation Acquisitions (TSIA), which is the Tishman Speyer SPAC, spiked 80% in the premarket. The deal would also be a windfall for Tishman Speyer. The company is set to receive a roughly 4% stake in Latch, worth around $60 million, as de facto payment for sponsoring the SPAC.