PitchBook News - Fifth Wall SPAC deal stands out

• The transaction values SmartRent, which was founded in 2017, at $2.2 billion.


• The combined entity will have $513 million in cash at closing, including $345 million that the SPAC, Fifth Wall Acquisition Corp., raised in an IPO earlier this year and a $155 million PIPE from investors including Starwood Capital Group, Lennar, Koch Real Estate Investments and D1 Capital Partners.


• The merger is expected to close later this year after a regulatory review.


• Regulators will be looking for an independent valuation of the company, known as a fairness opinion, and an assurance that substantive discussions between SmartRent and Fifth Wall were not held in advance of the SPAC IPO.

PitchBook's latest analyst note examines how autonomous finance, the next generation of personal finance management tools, will make intelligent financial choices on behalf of consumers without their direct involvement. Main takeaways include:

• Key to the success of autonomous finance is visibility into every financial product a consumer uses.


• The strongest autonomous finance solutions will allow for consolidation under a single provider with access to consumer financial products like payments, insurance, personal loans and mortgages, savings, and brokerage accounts.


• Since building a fully autonomous finance application is technically challenging, only a few solutions will likely stand out.