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After the news about the deal with Latch, TSIA stock has skyrocketed in the pre-market.
Latch, maker of the popular software-as-a-service (SaaS) platform LatchOS has announced that it would now be merging with an acquisition company started by the renowned real estate developer and investment manager Tishman Speyer, TS Innovation Acquisitions Corp (NASDAQ: TSIA). TSIA is a publicly-traded company that focuses on special purpose acquisition. The merger would lead to Latch becoming a publicly listed company.
It’s important to note that after the news, TSIA stock has jumped by 75% in the pre-market. Currently, its price is around $18.15.
According to details of the deal with TSIA, Latch has an equity value of $1.56 billion post-money. The company would trade on Nasdaq with the “LTCH” ticker symbol. Expectedly, this new merger would help to drive the growth of both firms to greater heights.
Latch, through its platform provides buildings and residents an avenue to make their spaces better places to live, work and also visit. The company has also been able to establish itself as a leader in the industry through its many works either as partners or investors with other leading real estate companies like Brookfield, Tishman Speyer and a host of others.
As it stands, the SaaS provider has an enviable record of having one in ten new multifamily apartments in the United States being built with its software. This translates to over 300,000 of housing units in over 35 states of the country. Still, this is only a small percentage of the market as there are over 40 million rental homes in the US which has a total annual market of $50 billion.
Luke Schoenfelder, who is a co-founder and also the CEO of the firm would continue in his capacity. However, upon the completion of the deal, the President and CEO of Tishman Speyer and CEO who is also the Chairman of TSIA, Rob Speyer, would join Latch’s Board of Directors.
Schoenfelder was quoted to have said that this transaction was going to further help Latch commercial drive by providing more capital. He added that the SaaS provider would also be able to tap into the enormous experience and expertise Tishman Speyer has to develop new products.
He went on to conclude his statement by hailing the newest addition to his firm’s Board of Director, Rob Speyer. According to him, Speyer’s leadership and vision would considerably aid in scaling the business to the next phase where it would be able to provide more value for its customers and shareholders.
Rob Speyer, on the other hand, said the mission of his company had always been to partner with a company that would be able to use the platform of his company to scale quickly. He believes that Latch has that potential to continue to grow especially with its team and its business model. Speyer also went on to note that his firm was going to be serving as an incubator, operational partner and launch customer for Latch.
LatchOS, is the pioneer multifamily operating system that brings together all the necessary components of a modern building. The software provides building managers, residents, and service providers an opportunity to unify their operations for everyone.
The platform provides users with certain features like that makes it distinct and a highly unique platform for its retinue of users.