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Opendoor could go public through merger: Bloomberg
Posted on Friday, 11 September 2020 12:51
San Francisco-headquartered real estate firm Opendoor has entered advanced discussions over a potential listing, people with knowledge of the matter told Bloomberg.
According to the sources, who did not wish to be identified as the matter is private, the initial public offering (IPO) could be carried out via a merger with blank check company Social Capital Hedosophia Holdings Corp II.
The people noted that the enlarged business would be worth around USD 5.00 billion and Social Capital is in talks to raise funds which will be used to finance the transaction.
An announcement is expected to follow in the next few weeks, they added.
However, Bloomberg’s sources cautioned that there is no guarantee of a deal taking place.
Opendoor’s technology enables users to sell their homes online.
The user can describe the property and receive a quote, before scheduling a video home assessment and choosing the selling option that works for them.
Opendoor effectively buys the home, makes any necessary repairs and lists the property for sale, charging a fee for the service.
In March 2019, the firm received a USD 300.00 million Series E funding round from General Atlantic, SoftBank, Access Industries and New Enterprise Associates, among others.
At the time, it said proceeds of the deal had been earmarked for ongoing product development.
Zephyr, the M&A database published by Bureau van Dijk, shows that the largest deal targeting a provider of data processing, hosting and related services to have been announced worldwide during 2020 to date was worth USD 18.50 billion.
That transaction took the form of an acquisition as Teladoc Health agreed to acquire Livongo back in August.
Other companies in the sector to have been targeted in the year to date include the likes of E*Trade Financial, Visma and Ellie Mae.
© Zephus Ltd