Offerpad to go public through SPAC deal

Offerpad has announced plans to go public through a special purpose acquisition company (SPAC) deal in a reverse takeover with Supernova Partners Acquisition Company (NYSE: SPNV). The Chandler-based real estate tech company will list on the New York Stock Exchange using the ticker symbol “OPAD.”

Supernova is led by Spencer Rascoff, an entrepreneur who’s co-founded several companies, including Hotwire, dot.LA and Pacaso. Most recently, he was co-founder and former CEO of Zillow, one of Offerpad’s biggest rivals, for nearly a decade.

The transaction is expected to be completed in the second or early third quarter of 2021 and will give Offerpad a post-transaction equity value of approximately $3 billion. The SPAC deal will provide up to $650 million in cash proceeds, with another $200 million fully committed common stock PIPE from Supernova’s initial public offering in October 2020. PIPE investors include BlackRock, Zimmer Partners and national homebuilder Taylor Morrison Home Corp. There will be another $50 million direct investment by Supernova affiliates.

Offerpad was founded in 2015 by Brian Bair and has become a leading real estate tech platform that is projected to generate $1.4 billion in revenue this year. The Offerpad platform and team are supposed to “empower homeowners to buy and sell homes online quickly and easily.” Using Offerpad, homeowners can receive a free, 24-hour cash offer online, partner with Offerpad to list a home with a back-up cash offer or buy one of thousands of homes listed on the company’s site. 

According to Rascoff, the online real estate industry has major potential. 

“iBuying has barely scratched the surface of real estate, one of the biggest addressable markets in the world,” he says. 

Just how big is he talking?

The online real estate market is low compared to other industries. It accounts for less than 1% of the $1.6 trillion total addressable market. 

Offerpad hopes this SPAC deal with Supernova will help accelerate the company’s growth to take advantage of the growing market opportunity. 

The company is currently in more than 900 cities and towns across the country.