Lakestar Will Take HomeToGo Public in $1 Billion Bet on Vacation Rental Search – Skift

HomeToGo, a travel startup focused on vacation rental price-comparison for consumers and software for property managers, announced on Wednesday its planned merger with blank-check company Lakestar SPAC I, via a regulatory filing in Germany.

The planned $1.41 billion (€1.2 billion) transaction would give HomeToGo an enterprise value of $1.01 billion (€861 million). The companies expect the merger to occur in the third quarter and list their merged entity on the Frankfurt Stock Exchange under the ticker “HTG.” The deal depends on the okay of the company’s shareholders.

“Joining forces with Lakestar SPAC I to bring HomeToGo to the public markets presents a great opportunity to fuel the next level of growth,” said Dr. Patrick Andrae, co-founder and CEO, in a statement. Andrae will continue to lead the company when it goes public.

Lakestar’s SPAC, or special purpose acquisition company, is controlled by European venture fund Lakestar, which has previously invested in HomeToGo. Lakestar has joined other investors, including European family offices specializing in tech investments and European tech entrepreneurs, in committing $88 million (€75 million) in private investment in public equity (PIPE). The current HomeToGo shareholders, convertible lenders, and holders of virtual options are expected to retain 69 percent of the post-transaction equity in aggregate. Lakestar SPAC I investors and founders are expected to retain 25 percent in the Combined Company.

HomeToGo claimed a strong revenue stream thanks to surging domestic travel interest in vacation rentals in the past year. The startup said it generated a gross booking value of $1.53 billion (€1.3 billion) in 2020. Despite the pandemic, it improved its adjusted earnings before interest, taxes, depreciation, and amortization to a loss of approximately $2.3 million (€2 million).

HomeToGo Joins the SPAC Trend

HomeToGo is the latest company to explore going public via a SPAC. Some startups see SPACs as a quicker, less risky way to go public than a traditional bank-led initial public offering (IPO). SPACs sell stock on listed exchanges first and then find companies to merge with.

Earlier this month, Grab, the Singapore-headquartered superapp that evolved from ridesharing into food delivery and financial services, agreed to merge with Altimeter Growth Corp. 2 at around a $39.5 billion valuation. Accor Hotels entered the SPAC market last month. Sonder’s SPAC deal will take the hotel and short-term rental company public later this year at a $2.2 billion valuation. Inspirato may go public in a $1 billion deal, Rosewood Hotels is looking to do a SPAC listing, and other travel companies are exploring SPACs.

Co-founder Wolfgang Heigl will remain chief strategy officer. Other key executives will include Valentin Gruber, a newly appointed chief operating officer, and Steffen Schneider as chief financial officer.

Martin Reiter, vice president, Europe, at Wayfair, who previously built Airbnb’s global presence while leading their international operations, will join the supervisory board. Reiter will also invest in the combined company.

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