Better, the US-based digital mortgage services provider backed by corporates SoftBank, American Express, Ping An, Citi and Ally Financial, agreed a reverse merger yesterday at a $7.7bn post-deal valuation.
The company will join forces with special purpose acquisition company Aurora Acquisition Corp, taking the position on the Nasdaq Capital Market it acquired in a $220m initial public offering in March this year.
The deal will be supported by $1.5bn in private investment in public equity (PIPE) financing from telecommunications and internet group SoftBank’s SB Management subsidiary, Activant Capital and fellow investment firm Novator Capital, Aurora Acquisition Corp’s sponsor.
Founded in 2016, Better offers a range of services including commission-less mortgages which are informed by the company’s Tinman data technology platform. It also provides realty services and title and homeowners insurance.
Vishal Garg, founder and chief executive of Better, said: “This transaction provides investment capital to accelerate Better’s growth and support our mission to make homeownership simpler, faster, more affordable and more accessible for all Americans, and eventually everyone else.”
The transaction comes in the wake of a $500m investment by SoftBank last month that increased Better’s valuation to $6bn and its overall funding to $954m.
Goldman Sachs Principal Strategic Investments, Pine Brook partners, KCK Group, Kleiner Perkins and IA Ventures provided the company’s earlier funding, before it closed a $160m series D round in August 2019 featuring insurer Ping An and financial services firms Citi and Ally Financial.
Real estate investment trust AGNC, Goldman Sachs, Activant Capital, Healthcare of Ontario Pension Plan, Pine Brook Partners and Kleiner Perkins also backed the round, at a $600m post-money valuation, while American Express and Ping An invested through American Express Ventures and Ping An Global Voyager Fund.
Private equity firm L Catterton then led a $200m series D round valuing Better at $4bn, investing with Ping An, American Express Ventures, Ally Financial, Activant Capital and 9Yards Capital in November 2020.
