SmartRent.com, Inc. (“SmartRent” or “the Company”), a leading provider of smart home and smart building automation for property owners, managers, developers, homebuilders and residents, today announced that it has completed its previously announced business combination with Fifth Wall Acquisition Corp. I (“FWAA”), a publicly-traded special purpose acquisition company (“SPAC”) sponsored by an affiliate of Fifth Wall, the largest venture capital firm focused on the global real estate industry and proptech. The transaction was approved at a special meeting of FWAA stockholders on August 23, 2021. In connection with the completion of the business combination, the Company changed its name to SmartRent, Inc. Starting tomorrow, SmartRent will trade on the New York Stock Exchange (“NYSE”) under the ticker symbol “SMRT.”
“We are thrilled to have reached this important milestone in our company’s history and are excited to embark on this next phase of our journey to make smart home technology accessible for everyone,” said Lucas Haldeman, CEO of SmartRent. “We are experiencing strong demand for our value-enhancing, open-architecture and hardware-agnostic operating system, that provides cost savings and additional revenue opportunities to property owners while helping them achieve their sustainability goals. This transaction will allow us to accelerate our growth strategy, and we look forward to our continued partnership with Fifth Wall as we further extend our leadership in this rapidly growing market.”
“Before SmartRent, the real estate industry lacked an integrated software management platform that could deliver a smart home experience for real estate operators,” said Brendan Wallace, CEO of Fifth Wall Acquisition Corp. I. “SmartRent has since become the de facto smart platform for some of the nation’s largest real estate owners and we are proud to be their partner during this next phase of growth.”
In connection with the transaction, SmartRent has received approximately $450 million in cash, net of transaction fees and expenses, which includes $155 million from a previously announced private placement of common stock (“the PIPE”). The PIPE is anchored by a diverse group including, leading real estate companies, SmartRent customers, and institutional financial investors. Among them are Starwood Capital Group, Lennar, Invitation Homes, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners L.P., Long Pond Capital, LP, and Conversant Capital LLC. SmartRent will utilize the proceeds to invest for growth in the emerging multibillion-dollar smart building management market. At closing, approximately 99.9% of funds remained in FWAA’s trust account net of redemptions.
SmartRent and FWAA have aligned long-term interests as the founder shares of FWAA’s sponsor are locked up for periods of up to three years. Additionally, because no SPAC warrants were issued, SmartRent’s stockholders will benefit from less dilution and a more streamlined capital structure.
