Offerpad, Inc., a Chandler, AZ-based real estate solutions platform, entered into a definitive merger agreement with Supernova Partners Acquisition Company, Inc., (NYSE: SPNV), a publicly traded special purpose acquisition company.
When the transaction closes, the publicly traded company will be named Offerpad Solutions Inc. and its Class A common stock is expected to be listed on the New York Stock Exchange under the ticker “OPAD.”
Founded in 2015 and led by Brian Bair, CEO and founder, Offerpad provides a real estate solutions platform and a team of real estate solutions experts that allow homeowners to buy and sell homes online. The company also offers add-ons, such as show-ready home services; home improvement advances; extended stay options; and title and mortgage services that allow customers to personalize the home buying and selling experience even more.
The company projects to generate revenue of $1.4 billion in 2021 by partnering with Supernova. It currently operates in 900+ cities and towns across the country and plans to expand nationwide.
The business combination values Offerpad at a post-transaction equity value of approximately $3.0 billion. The transaction is expected to provide up to $650 million in gross cash proceeds to the combined company, including up to $403 million of cash held in Supernova’s trust account from its initial public offering in October 2020, a fully committed $200 million common stock PIPE and a $50 million direct investment by affiliates of Supernova.
Existing Offerpad shareholders will roll 100% of their equity into the combined company and are expected to own approximately 75% of the combined company at closing. Upon completion of the transactions, and after payment of expected transaction expenses and paydown of certain of Offerpad’s debt, Offerpad expects to add approximately $600 million of cash to the balance sheet to fund operations and support new and existing growth initiatives.
The transaction, which has been unanimously approved by the boards of directors of Offerpad and Supernova, is subject to approval by Supernova’s stockholders and other customary closing conditions, and is expected to be completed in the second or early third quarter of 2021.