If you’re looking to invest in the homeownership platform Better.com, you’ll have to wait until later this year. The company's merger with a blank check company is expected to close in the fourth quarter.
In May, the SoftBank Group-backed Better HoldCo, Inc. announced that it would go public through a merger with SPAC Aurora Acquisition Corp. (AURC). The transaction gives the company a valuation of almost $8 million.
“This transaction provides investment capital to accelerate Better’s growth and support our mission to make homeownership simpler, faster, more affordable and more accessible for all Americans, and eventually everyone else,” said Better.com founder and CEO Vishal Garg in a statement.
As part of the transaction, SoftBank subsidiary SB Management Limited will commit to a $1.5 billion PIPE investment in the combined company. Novator Capital, sponsor of the Aurora SPAC, will also invest $200 million into the merged company.
What is Better.com?
Better.com is a online homeownership platform that offers mortgage, real estate, title, and homeowners insurance products.
Founded in 2016, the company’s mission is to empower home buyers and sellers by digitizing the mortgage process and eliminating fees and commissions. The site helps customers throughout the home buying process, from getting pre-approved for a mortgage to hiring a realtor to securing title insurance.
“This all got started because I wanted a place for my kids to call home,” Garg said in a statement. “Better was founded to help eliminate unnecessary barriers to home financing. Everyone deserves a home, and we’re not going to stop until we make it possible for everyone to not just dream of a home, but to have one.”
Currently, Better.com is the fastest-growing homeownership platform in the U.S. Since 2019, the company has reported YoY growth of 490 percent in loans, 855 percent in title insurance, 300 percent in homeowner insurance, and 471 percent in real estate transactions.
In 2020, the company reported adjusted earnings of over $281 million. Better.com has funded over $31 billion in home loans and over $7 billion in insurance coverage. Since it started, the company has reportedly raised over $400 million in capital.
SPAC went public earlier this year.
Aurora Acquisitions Corp. closed its IPO this past March. Currently, it's trading on Nasdaq under the ticker symbol “AURC.” According to a company statement, the SPAC was created to make long-term investments in companies poised for sustained success.
“We are pleased to partner with Better, an emerging market leader with proven executive management led by Vishal, an attractive business model and a highly scalable digital platform,” said Thor Björgólfsson, chairman of Aurora Acquisition Corp., in a statement.
How to buy stock in Better.com
With the housing market boom driving demand for mortgage lending, now is a good time to consider investing in a lender like Better.com.
If you are looking to invest in Better.com, you can buy shares of Aurora Acquisition (AURC) right now. AURC is currently trading at $9.93 per share.