The share price of TS Innovation Acquisitions (NASDAQ:TSIA) more than doubled ahead of the market’s Monday morning opening after announcement of its agreement to merge with property-tech SaaS platform Latch. TSIA stock came public in November as a special purpose acquisition company backed by real estate owner and developer Tishman Speyer Properties.
The latest blank-check company deal will have an equity value of $1.56 billion, according to a joint statement from the companies. The merged entity will trade on the Nasdaq exchange under the ticker LTCH stock.
While SPACs have been hot in the past year, few have had the shared affinities between Tishman Speyer and Latch. The smart property software-as-a-service platform was founded in 2014 and provides buildings and occupant with services such as smart access, smart home sensors and connectivity.
Tishman is among the many large real estate owners and investors that use the platform. According to Latch, in 2019, one in 10 new multifamily apartments in the U.S. were built with its software.
TSIA Stock Rides Wave of Prop Tech SaaS
Property technology. or prop tech, combines information technology and platform economics to real estate markets. Similar to fintech, prop tech seeks to reduce paperwork or make transactions quicker and more efficient, as well as streamline and improve property management processes.
Latch had posted sales of $157 million in 2020, about 50% more than revenue in 2019. Post closing, the merged company will have as much as $510 million in cash. The transaction is expected to close in the second quarter.
InvestorPlace contributor Chris Markoch this morning noted that SaaS companies are a win-win for customers and for investors. And analysts love the predictable revenue that comes with software-as-a-service stocks.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.