SmartRent.com has gone public via a merger with Fifth Wall Acquisition Corp I, a blank check company backed by Fifth Wall. Operating as SmartRent, the newly combined company began trading August 25, 2021 on the New York Stock Exchange under the ticker symbol “SMRT.”
SCOTTSDALE, Ariz.–(BUSINESS WIRE)–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.
Recent Business Highlights
Since announcing the business combination in April 2021, SmartRent has made significant product and growth announcements, including:
An exclusive integration with map visualization technology leader Engrain to optimize SmartRent’s new parking management solution, Alloy Parking.
Expansion into student housing, an attractive end market with a demographic that is highly responsive to technology and smart home innovations.
The launch of Smart Intercom and Alloy Access Solo, which further expand SmartRent’s access control offerings and ability to transform apartments into connected communities.
Substantial customer growth with expansion to 182 customers, which collectively own an aggregate of 3.5 million rental units and include 15 of the top 20 multifamily residential owners in the United States, as of June 30, 2021.
SmartRent’s existing senior management team will continue to lead the now combined company, including Lucas Haldeman, Chief Executive Officer, Demetrios Barnes, Chief Operating Officer, Mitch Karren, Chief Product Officer, Isaiah DeRose-Wilson, Chief Technology Officer, CJ Edmonds, Chief Revenue Officer and Jonathan Wolter, Chief Financial Officer.
SmartRent’s Board of Directors will be comprised of seven members, including Lucas Haldeman, Alana Beard, Robert Best, John Dorman, Bruce Strohm, Frederick Tuomi, and Ann Sperling.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acted as co-financial advisors to SmartRent and DLA Piper LLP (US) acted as its legal counsel. Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC acted as Lead Placement Agents on the PIPE for Fifth Wall Acquisition Corp. I. Deutsche Bank Securities and Goldman Sachs & Co. LLC acted as Capital Markets Advisors to Fifth Wall Acquisition Corp. I. Gibson, Dunn & Crutcher LLP served as legal counsel to Fifth Wall Acquisition Corp. I, and Moelis & Company LLC acted as financial advisor to the board of directors of Fifth Wall Acquisition Corp. I. Simpson, Thacher & Bartlett LLP served as counsel to the placement agents.
Founded in 2017, SmartRent (NYSE: SMRT) is an enterprise smart home and smart building technology platform for property owners, managers and residents. The SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. For more information, please visit smartrent.com.
About Fifth Wall Acquisition Corp. I
Fifth Wall Acquisition Corp. I is a blank check company incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.