Chera family fails to raise cash for Brivo proptech merger

Crown Proptech Acquisitions needed $95M to take the company public

New York /
Jul.July 18, 2022 07:00 AM
From left: Brivo's Steve Van Till and Crown Proptech's Richard Chera (Getty, LinkedIn/Steve Van Till, Crown Proptech)

From left: Brivo’s Steve Van Till and Crown Proptech’s Richard Chera (Getty, LinkedIn/Steve Van Till, Crown Proptech)

One of New York City’s biggest retail landlords has come up short in an effort to invest in protech company Brivo, a maker of card-swipe and other keyless-entry technology.

The Chera family had targeted the Nevada-based firm to combine with its own special purpose acquisition company, or SPAC, but missed a July 9 deadline to consummate the merger.

Crown Proptech Acquisitions, led by CEO Richard Chera, failed to drum up the necessary cash, according to a person familiar with the deal.

The merger would have made Brivo a publicly traded company, unlocking hundreds of millions of dollars in investor cash and giving Crown a front seat at the bonanza. Now the $276 million that Crown raised by selling shares in its SPAC will likely be returned to investors.

Chera disclosed Thursday in an SEC filing that the SPAC did not have $95 million in unrestricted cash, which would have allowed it to secure an additional $75 million from investors and close the merger.

The filing noted that after the merger deadline expired, $68 million in investment commitments were withdrawn by Golub Capital, an investor otherwise ready to close the deal, the person said. Golub had secured a seat on the board of the would-be public company.

Brivo claims to have 20 million users who employ its technology to gain access to 70,000 real estate locations in the U.S.

Crown and Brivo did not return requests for comment. A representative of Golub declined to comment.

SPAC deals rocketed to popularity as an under-the-radar way to take companies public after high-profile flameouts of traditional IPOs, such as WeWork’s in 2019.

Years of cheap borrowing followed by government responses to the pandemic had kept capital markets flowing. But a merky track record for SPAC investors combined with rule changes and increased borrowing rates have complicated the picture.

Among derailed SPAC dreams: Fifth Wall’s decision to not pursue a second such deal, and Goldman Sachs’ exit from the SPAC market all together.





    Related Articles

    arrow_forward_ios
    Eric Gordon
    Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
    Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
    Big Tech locations in NYC
    MAP: Here’s a look at all the Big Tech locations in NYC
    MAP: Here’s a look at all the Big Tech locations in NYC
    What will proptech look like in 2019 and beyond?
    What will proptech look like in 2019 and beyond?
    What will proptech look like in 2019 and beyond?
    Zillow's Rich Barton, Allen Parker (Zillow Group, Getty)
    Zillow brushes off Citysnap threat, says agent advertising will fall
    Zillow brushes off Citysnap threat, says agent advertising will fall
    Zillow's Rich Barton and Opendoor's Eric Wu (Zillow Group, LinikedIn, Getty)
    After iBuying debacle, Zillow partners with Opendoor
    After iBuying debacle, Zillow partners with Opendoor
    Metaverse real estate values are plummeting (Photo Illustration by The Real Deal with Getty Images)
    Metaverse land prices down 80% in six months
    Metaverse land prices down 80% in six months
    Brad Hargreaves (left) and Karlene Holloman (Common)
    Common founder Brad Hargreaves to step down as CEO
    Common founder Brad Hargreaves to step down as CEO
    From left: Opendoor CEO Eric Wu and FTC chair Lina Khan (Getty Images, Opendoor)
    FTC slaps Opendoor with $62M fine for “misleading” sellers
    FTC slaps Opendoor with $62M fine for “misleading” sellers
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...