(RTTNews) - SmartRent.com said that it has entered into a definitive business combination agreement with Fifth Wall Acquisition Corp. I (FWAA), a special purpose acquisition company or SPAC sponsored by an affiliate of Fifth Wall.
The equity value of the combined company is $2.2 billion at the $10.00 per share PIPE subscription price and assuming no public shareholders of FWAA exercise their redemption rights.
Upon the closing of the transaction, the combined company will be publicly traded. The combined company is expected to have up to approximately $513 million in cash at closing, including $345 million of cash held in FWAA from its initial public offering on February 5, 2021.
After the merger, SmartRent's existing shareholders are expected to own approximately 73% of the pro forma company at close.
The transaction has been unanimously approved by the Boards of Directors of both SmartRent and FWAA. It is expected to close in the third quarter 2021, subject to the satisfaction of customary closing conditions, including the approval of shareholders of both parties.
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