Mortgage lender Better to go public via SPAC merger

Investment giant Softbank has already invested $500M

National /
May.May 11, 2021 12:30 PM
Better.com CEO Vishal Garg (Better.com, iStock)

Better.com CEO Vishal Garg (Better.com, iStock)

 

Mortgage lender Better is looking for a big pay day.

The company plans to go public via a merger with Aurora Acquisition Corp., a special-purpose acquisition company backed by the investment firm Novator Capital, the Wall Street Journal reported. The deal would give Better a pre-money valuation of $7 billion.

The investment giant Softbank put $500 million into Better, which was previously valued at around $6 billion. Aurora — whose leadership team includes Novatar’s CEO Thor Björgólfsson and Net-a-Porter co-founder Arnaud Massenet — could also put in $200 million.

Mortgage lenders have seen a huge boost during the pandemic thanks to low rates and a hot housing market. Last year, Better made over $850 million in revenue and more than $200 million in net profits, the publication reported.

But that activity may be slowing down. The 30-year mortgage rate is starting to rise and competition is growing, narrowing profit margins for lenders.

SPACs have also seen an explosion in popularity in the past year, raising $83 billion across 248 blank-check firms. In the proptech space, a number of companies — including Sonder, SmartRent and Latch — have launched IPOs by merging with blank-check companies.

[WSJ] — Keith Larsen





    Related Articles

    arrow_forward_ios
    Lucy Guo and One Thousand Museum (1000Museum, LinkedIn)
    Silicon Valley whiz kid buys One Thousand Museum condo for $7M
    Silicon Valley whiz kid buys One Thousand Museum condo for $7M
    From left: Brian Long and Liz Day in front of 6901 Granada Boulevard (Attentive, The Carroll Group, iStock)
    Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
    Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
    From left: 1840 South Ocean Boulevard, 1341 South Ocean Boulevard and 2000 South Ocean Boulevard
    These were South Florida’s largest resi sales of 2021
    These were South Florida’s largest resi sales of 2021
    Miami-Dade County slapped with ethics complaint over approval of 550-home Calusa project
    Miami-Dade County slapped with ethics complaint over approval of 550-home Calusa project
    Miami-Dade County slapped with ethics complaint over approval of 550-home Calusa project
    Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
    Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
    Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
    Michael Stern accused of “duping investors” in Monad Terrace project
    Michael Stern accused of “duping investors” in Monad Terrace project
    Michael Stern accused of “duping investors” in Monad Terrace project
    Edward Lando with his new house (Getty)
    Goody founder pays $15M for waterfront Venetian Islands home
    Goody founder pays $15M for waterfront Venetian Islands home
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    arrow_forward_ios

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

    Loading...