SmartRent, a US-based intelligent home technology developer backed by e-commerce firm Amazon, agreed a reverse merger with special purpose acquisition company Fifth Wall Acquisition Corp I yesterday at a $2.2bn valuation.
The merged entity will take the spot acquired by Fifth Wall Acquisition Corp I, which was formed by property-focused venture capital firm Fifth Wall, when it floated in a $345m initial public offering on the Nasdaq Capital Market in February this year.
Property developer Lennar, home leasing service Invitation Homes, Starwood Capital Group, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners, Long Pond Capital and Conversant Capital are taking part in a $155m private investment in public equity financing supporting the deal.
Founded in 2017, SmartRent provides residential internet-of-things (IoT) automation software and hardware products designed to help real estate maintenance managers and rental firms monitor the IoT tools installed in their properties. Its existing shareholders will hold about 73% of the company post-merger.
SmartRent had received $102m in total funding prior to the transaction, having completed a $60m series C round in May 2020 led by venture capital firm Spark Capital and backed by Fifth Wall, Bain Capital Ventures, Energy Impact Partners and RET Ventures.
Amazon’s Alexa Fund took part in a $32m series B round for the company in mid-2019 that was led by Bain Capital Ventures and which fetaured featuring property investment trusts Essex Property Trust and UDR, Starwood Capital and RET Ventures.
RET Ventures had already led SmartRent’s $5m series A round in November 2018, four months after doing the same for the company’s $1.5m seed round.
Lucas Haldeman, founder and CEO of SmartRent, said: “SmartRent’s comprehensive platform has a clear technological edge on competitors and significant growth potential; and Fifth Wall, through its extensive investor and partner network, is uniquely positioned to help us expand our capabilities globally.”
