Residential real estate solutions provider Offerpad has entered into a merger agreement with Supernova Partners Acquisition Company Inc., a publicly-traded special purpose acquisition company. The business combination values Offerpad at a post-transaction equity value of approximately $3.0 billion. If the transaction closes as expected in the second or early third quarter of 2021, the publicly traded company will be named Offerpad Solutions Inc. Its Class A common stock is expected to be listed on the New York Stock Exchange under the ticker “OPAD.”
Under the Offerpad platform, homeowners can request a free, 24-hour cash offer online in less than three minutes, partner with Offerpad to list a home with a back-up cash offer or buy one of the thousands of homes available on offerpad.com. Additional offerings include show-ready home services, home improvement advances, extended stay options and title and mortgage services. Founded in 2015, Offerpad projects revenues of $1.4 billion in 2021.
“iBuying is coming into its moment, as consumers increasingly want to transact online,” said Brian Bair, Offerpad CEO and founder. “Our team’s combination of grit and real estate experience have helped us complete around 30,000 transactions and achieve nearly $7 billion in gross transaction volume since inception, and we are now poised for fast growth as a public company.”
Online penetration in real estate is low compared with other industries, at less than 1% of the $1.6 trillion total addressable market, the company said. By partnering with Supernova to become a public company, Offerpad expects it will be able to accelerate its growth to capture more of this market opportunity. Offerpad operates in 900-plus cities and towns across the country and plans to expand nationwide.
Supernova is led by Spencer Rascoff, a serial entrepreneur who co-founded Hotwire, Zillow, dot.LA and Pacaso, and who led Zillow as CEO for nearly a decade; Alexander Klabin, founder and CEO of Ancient and a co-founder of Senator Investment Group; Robert Reid, an investor who worked for 21 years at Blackstone’s private equity group and Michael Clifton, an investor who was most recently a senior investment professional at The Carlyle Group.
