Proptech firm Latch, maker of smart building operating systems, has become a public company following the completion of its special purpose acquisition company (SPAC) merger with TS Innovation Acquisitions Corp. (TSIA), backed by real estate owner, developer, operator, and investment manager Tishman Speyer Properties. Latch’s common stock and warrants began trading on the Nasdaq Global Select Market on June 7 with the ticker symbols LTCH and LTCHW, respectively.
In connection with the transaction, Latch has received about $453 million in cash proceeds, net of fees and expenses funded in conjunction with the closing, which includes $190 million from the previously announced private placement of common stock. According to Latch, these proceeds will be used to drive growth, such as increasing the number of units on its platform, expanding its offerings to additional asset classes, and spreading to new geographies.
“Latch’s long-term mission is to make all types of spaces better places to live, work, and visit, said Luke Schoenfelder, co-founder, CEO, and chairman of the board of Latch, the maker of the full-building enterprise software-as-a-service platform LatchOS. “As a public company, we expect to have the capital and strategic resources to deliver new products, grow our market share in North America, enter new markets abroad, and expand into new verticals that will benefit from our unique, full-building operating system. We look forward to executing our strategic objectives and driving enhanced value for our shareholders, customers, and residents.”
According to Latch, more than one in 10 new apartments in the U.S. were being built with its products in 2019 and 2020, with multifamily communities in more than 35 states featuring its solutions.
“Today, as Latch begins publicly trading, its technology is in one out of every 10 new apartments, with residents using it on average over four times per day. Camber Creek has been a proud partner of Luke and the whole founding team for the past seven years as they’ve changed the industry,” said Casey Berman, managing director and a general partner at Camber Creek, Latch’s first venture capital investor. “From seed investment to the Nasdaq, the company’s success is a testament to its founders’ vision and execution and a sign of proptech’s reach. We should expect tremendous growth from the entire proptech industry.”
Since announcing the business combination in January, Latch has launched a series of new products, including LatchOS for Commercial Office, Latch Visitor Express, The Latch Lens Partner Program, LatchID, and Latch C2. In May, it announced its expansion into the commercial office space, with the Empire State Building, Brookfield Place, and Tishman Speyer’s global headquarters at Rockefeller Center among the first to utilize its new solutions for commercial offices with Latch Visitor Express.
“We were attracted to Latch for its proven business model, strong leadership, and exceptional products, which have completed changed the building experience,” said Rob Speyer, president and CEO of Tishman Speyer and member of Latch’s board of directors. “I look forward to continuing my collaboration with Luke and the management team, helping Latch strengthen and grow its position in the industry.”
For Latch, Goldman Sachs acted as financial advisor and as joint placement agent on the private placement of common stock, and Latham & Watkins served as legal advisor. For TSIA, Allen & Co. and BofA Securities acted as joint financial advisors and joint lead placement agents on the private placement of common stock, and Sullivan & Cromwell served as legal advisor. William Blair & Co., Robert W. Baird & Co., Cantor Fitzgerald & Co., KeyBanc Capital Markets, D.A. Davidson & Co., and The Benchmark Co. acted as non-exclusive capital markets advisors on the de-SPAC process.
