Latch Inc., a maker of smart locks and building-management software, and TS Innovation Acquisitions Corp., a special purpose acquisition company (SPAC) sponsored by global real estate developer Tishman Speyer, have entered into a definitive merger agreement that will result in Latch becoming a publicly listed company.
The transaction values Latch at an equity value of $1.56 billion post-money, said the companies in a statement. Upon closing, Latch’s common stock is expected to trade on NASDAQ under the ticker symbol “LTCH”.
The company’s management team, led by co-founder and CEO Luke Schoenfelder, will continue to operate and manage Latch following the transaction.
Rob Speyer, President and CEO of Tishman Speyer and CEO and Chairman of TSIA, will join the Company’s Board of Directors upon completion of the transaction.
Upon completion of the transaction, Latch said it expects to have up to $510 million in cash, net of fees and expenses.
“This transaction provides the capital for Latch to accelerate our product and market expansion and drive bookings growth. Furthermore, Latch will be able to harness Tishman Speyer’s global real estate platform to more rapidly create new products, leveraging their vertically integrated real estate business and on-the-ground teams across the globe. We are fortunate to benefit from Rob’s vision and leadership and look forward to partnering with the entire Tishman Speyer team as we create value for our shareholders, customers, and residents by scaling our business in this next phase while we continue to enhance the way people interact with their spaces,” said Schoenfelder.
“As a long-time real estate and capital markets investor, Tishman Speyer has helped accelerate many of the prop tech innovations reshaping our cities,” said Speyer. “We launched our SPAC knowing that our expertise and portfolio could power the next generation of innovators on the public stage. Our mission has been to partner with a growing company; one with a great team, a strong and differentiated business model and the ability to scale quickly through our platform. As both a customer and early investor in Latch, I know Luke and his talented team check all of these boxes. We look forward to serving as an incubator, operational partner and launch customer as Latch develops and expands its exceptional product lines.”
Founded in 2014, Latch has worked with many of the country’s largest real estate owners as partners and investors including Tishman Speyer, Brookfield, and more.
The company said it has booked over 300,000 units across more than 35 states, with one in ten new multifamily apartments in the United States built with Latch in 2019.