PTAC Stock: 13 Things to Know About PropTech and the SPAC Merger

The vote is in — more SPAC merger news is on its way to Wall Street. As of Monday, it looks like will complete its merger with PropTech Acquisition (NASDAQ:PTAC). As a result, PTAC stock is climbing. But what do investors need to know about the SPAC merger? And why does it matter right now?

a large house has a For Sale sign out front

Source: Shutterstock

To start, investors should understand what is all about. Essentially, provides software to different insurance and moving businesses. In return, it gains access to the homebuyers those businesses are working with. From there, can sell additional services like TV, internet and gutter cleaning. Perhaps most importantly, represents yet another digital disruptor in the world of real estate.

With that in mind, here is what you need to know about PTAC stock and the SPAC merger:

  • Importantly, has been trading through PropTech Acquisition, a blank-check company.
  • PropTech came public in November 2019.
  • At the time, it raised $150 million by selling 150 units at $10 each.
  • Today, PropTech shareholders voted to approve the business combination.
  • As a result, will soon start trading on the Nasdaq Exchange under the ticker PRCH.
  • Investors should note that the SPAC deal values at $523 million.
  • So what does the SPAC merger mean for the business?
  • Well, the company plans to use proceeds from the deal to expand.
  • Additionally, Porch has struggled with profits. Its executive team says the deal will give them a blank slate and a chance to move past a history of losses.
  • The company lost $49.9 million in 2019, $103.3 million in 2019 and is projecting $34 million in losses for 2020.
  • However, will have no debt when it comes public via PTAC stock.
  • Also importantly, the company became profitable in June with $7 million in EBITDA.
  • Additionally, it is eyeing $120 million in revenue in 2021.

Why PTAC Stock and the SPAC Merger Represent

So what else do investors need to know about PTAC stock and the SPAC merger? And why should they be interested ahead of the PRCH stock debut?

Well, a large part of that answer comes from the nature of the business. Importantly, CEO Matt Ehrlichman says the company continues to innovate and shake things up. Through its current structure, it says it is able to gain early access to customers. For instance, it says that 5,500 home-inspection companies use is software. This means that Porch has access to customers from those 5,500 companies.

And beyond that, Ehrlichman says that the company is looking at expanding into all sorts of other relevant verticals. As part of this, is currently eyeing 150 companies for potential M&A deals. This comes as Porch has spent nearly $40 million to expand its offerings since 2017.

Right now, investors may see the SPAC merger and PTAC stock as a way to get in on the next Opendoor (NASDAQ:OPEN). Although it seems such a SPAC deal will help Porch, jumpstarting its innovation and helping it avoid a traditional IPO, it still has a lot to figure out. However, this clean slate could just be what Porch needs to shine.

Ahead of the SPAC merger, keep PTAC stock on your radar.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with 

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC