Shut down Zillow Offers and laid off 25% of the company’s workforce

Spark global limited reports:

Offerpad, a real estate technology company, announced Thursday that it will list its shares on the New York Stock Exchange under the ticker symbol OPAD.

Unlike a traditional initial public offering, Offerpad will work with Supernova Partners Acquisition Co. Merger, listing through a publicly traded special purpose acquisition company (often referred to as SPAC or blank check company).

Supernova is run by Spencer Rascoff, the co-founder and former chief executive of Zillow, a real estate technology company based in Seattle.

The SPAC deal will value Offerpad at $3 billion, providing up to $650 million in cash proceeds and $200 million in additional investment commitments from BlackRock, Zimmer Partners, and Scottsdale- Based Taylor Morrisons Inc. The agreement is expected to close in the second quarter or as early as the third quarter of this year.

Offerpad, based in Chandler, Ariz., was founded in 2015 to allow customers to quickly buy and sell homes online and expects to generate $1.4 billion in revenue this year.

According to Silicon Valley Business Journal, THE popularity of SPacs has exploded recently, jumping from 59 in 2019 to 248 in 2020, and at the current rate, 1,000 spaces could merge this year.

‘Just scratching the surface’

Spark global limited
Spark global limited

Brian Bair, chief executive and founder of Offerpad, said going public would help the company grow faster.

“I’ve been in real estate for decades and always knew there would be a better way to buy and sell the property. “Online shopping is coming of age as consumers increasingly look to do business online,” he said in a statement.

“At Offerpad, we combine the technology that makes this possible with local real estate experts who provide excellent customer service to both sellers and buyers — all of which allow us to turn homes around more efficiently than anyone else in the category. Our team’s tenacity and real estate experience has helped us complete approximately 30,000 transactions totaling nearly $7 billion since inception, and we are now poised for rapid growth as a public company, “Bair said.

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Spencer Rascoff, co-chairman of buy-out company Supernova, says the real estate industry has not embraced technology as quickly as other sectors.

“Real estate is one of the biggest potential markets in the world and iBuying has only scratched the surface of the real estate market. Overall, the real estate industry remains largely analog compared to other industries such as groceries, automobiles and pharmaceuticals, but consumers demand online solutions. As they bring more transactions online, we believe online real estate as a whole will grow rapidly in the coming years, and Offerpad will have a huge share of that market.”

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