TSIAU Stock Price Increases Over 75% Pre-Market: Why It Happened

TSIAU Stock Price Increases Over 75% Pre-Market: Why It Happened
  • The stock price of TS Innovation Acquisitions Corp. (NASDAQ: TSIAU) is trading at over 75% pre-market. This is why it happened.

The stock price of special purpose acquisition company (SPAC) TS Innovation Acquisitions Corp. (NASDAQ: TSIAU) is trading at over 75% pre-market. Investors are responding to Latch, a maker of full-building enterprise SaaS platform LatchOS, merging with a Tishman Speyer-sponsored SPAC and becoming a publicly listed company. Tishman Speyer Properties is a leading real estate owner, developer, operator and investment manager.


The deal values the company at an equity value of $1.56 billion post-money. And upon closing, Latch’s common stock is expected to trade on NASDAQ under the ticker symbol “LTCH”.


Launched in 2014, Latch is an enterprise SaaS provider to buildings and residents that makes spaces better places to live, work and visit. And from the beginning, Latch has worked hand-in-hand with many of the country’s largest real estate owners as partners and investors including Tishman Speyer, Brookfield, and more. The company has booked over 300,000 units across more than 35 states with 1 in 10 new multifamily apartments in the United States built with Latch in 2019.


The company’s proven management team — led by co-founder and CEO Luke Schoenfelder — will continue to operate and manage Latch following the transaction. Rob Speyer, President and CEO of Tishman Speyer and CEO and Chairman of TSIA, will join the Company’s Board of Directors upon completion of the transaction.


Upon the completion of the transaction, Latch expects to have up to $510 million in cash, net of fees and expenses to fund growth initiatives, including growing the number of units on its platform, expanding to additional asset classes and spreading to new geographies. And this includes net proceeds from TSIA’s cash held in trust of $300 million from its initial public offering in November 2020 and approximately $60 million of cash on Latch’s balance sheet. 


The deal is further supported by a $190 million PIPE at $10.00 per share from key investors, including funds and accounts managed by BlackRock, D1 Capital Partners, Durable Capital Partners LP, Fidelity Management & Research Company LLC, Chamath Palihapitiya, The Spruce House Partnership, Wellington Management, ArrowMark Partners, Avenir and Lux Capital.


KEY QUOTES:


“Latch has successfully created an entire ecosystem around our full building operating system, devices, and partners that enhances the building experience for both owners and residents. This transaction provides the capital for Latch to accelerate our product and market expansion and drive bookings growth. Furthermore, Latch will be able to harness Tishman Speyer’s global real estate platform to more rapidly create new products, leveraging their vertically integrated real estate business and on-the-ground teams across the globe. We are fortunate to benefit from Rob’s vision and leadership and look forward to partnering with the entire Tishman Speyer team as we create value for our shareholders, customers, and residents by scaling our business in this next phase while we continue to enhance the way people interact with their spaces.”


— Luke Schoenfelder


“As a long-time real estate and capital markets investor, Tishman Speyer has helped accelerate many of the prop tech innovations reshaping our cities. We launched our SPAC knowing that our expertise and portfolio could power the next generation of innovators on the public stage. Our mission has been to partner with a growing company; one with a great team, a strong and differentiated business model and the ability to scale quickly through our platform. As both a customer and early investor in Latch, I know Luke and his talented team check all of these boxes. We look forward to serving as an incubator, operational partner and launch customer as Latch develops and expands its exceptional product lines.”


— Rob Speyer


Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.