Offerpad, Inc. March 18 entered into a definitive merger agreement with Supernova Partners Acquisition Company, Inc., a publicly traded special purpose acquisition company, as it was informed by Offerpad.
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.
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. 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.
J.P. Morgan Securities LLC is serving as exclusive financial advisor to Offerpad. Latham & Watkins LLP is serving as legal counsel to Offerpad.
J.P. Morgan Securities LLC and Jefferies LLC are serving as exclusive capital markets advisors to Supernova. Simpson Thacher & Bartlett LLP is serving as legal counsel to Supernova.
Offerpad, which was founded in 2015, is a leading real estate solutions platform that projects to generate revenue of $1.4 billion in 2021. Offerpad's tech-enabled platform and team of real estate solutions experts empower homeowners to buy and sell homes online quickly and easily. Offerpad currently operates in 900+ cities and towns across the U.S. and plans to continue its expansion.
