Real estate tech startup Doma, formerly called States title, Announced Tuesday, it will be made public through a merger with SPAC Capital Investment Corp V In a deal worth $ 3 billion, including debt.
SPAC, Often called blanc-check companies, are becoming increasingly common. They exist as publicly traded entities looking for a private company to make a private entity public without the hassle of an IPO.
When it floats later this year, Doma will trade on the New York Stock Exchange under the ticker symbol DOMA. The transaction is expected to provide up to $ 645 million in cash proceeds, including a fully committed PIPE of $ 300 million and up to $ 345 million held in Capital Investment Corporation V’s trust account.
CEO Max Simkoff set up San Francisco-based DOMA in September 2016 “A Technology-Driven Solution to Close Mortgages Immediately.” While it was initially established to immediately reduce title insurance, the company has expanded the same approach to handle “every aspect” of closing and escrow.
DOMA has developed a patented machine learning technology that says it reduces title processing time from five days to “one minute” and processes the entire mortgage closing process from “50+ days in less than a day” Reduces by. ” The startup has facilitated the closure of over 800,000 real estate for lenders such as Chase, HomePoint, Sierra Pacific Mortgage and others.
The name change is designed more accurately Reflect your intention to expand the title “well beyond” to areas such as appraisals and home warranties.
Its goal, along with going public, is to be able to “continue development, market expansion and investment in new products”.
The anchoring of PIPE includes funds and accounts managed by Blackrock, Fidelity Management & Research Company LLC, SB Management (a subsidiary of SoftBank Group), Gores, Hedosia, and Wells Capital. Existing Doma shareholder Lennar is also committed to PIPE and Spencer Raskoff, co-founder and former CEO of Zillow Group, has made a personal investment for PIPE.
DOMA is expected to retain cash proceeds of approximately $ 510 million, and existing DOMA shareholders will hold no less than approximately 80 percent of the equity of the new combined company, subject to redemption and transaction payments made by Capital’s public stockholders is. Expenditure.
In mid-February, Doma announced it Debt closed at $ 150 million in financing From HSCM Bermuda, Which previously invested in the company. And last May, it Announced extensively $ 123 million Series C round of funding At a valuation of $ 623 million.
In 2020, social capital Hedosophia II, an investor-linked blank-check company Chamat Palihapatiya, Announced that it would merge with Opendoor, Making private real estate startups public Is in process.
Porch.com also went public A SPAC deal In December. And, SoftBank supported Opinion, A Silicon Valley-based smart window company, will complete a Recently merged SPAC Will be publicly listed on the NASDAQ Stock Exchange on March 8. The company expects to commence business with a market value of $ 1.6 billion.