Better to go Public With Aurora Merger

May 25, 2021

Digital homeownership platform Better HoldCo Inc. will go public via a merger with special purpose acquisition corporation (SPAC) Auroa Acquisition Corp. in a deal with an equity value of about $6.9 billion and a post-money equity value of about $7.7 billion.

Founded in 2016, Better offers mortgage, real estate, title, and homeowners insurance products through one online platform.

As part of this transaction, SB Management Limited, a subsidiary of SoftBank Group Corp., will participate by committing to a $1.5 billion private investment in public equity (PIPE) upon closing of the transaction. Aurora’s sponsor, Novator Capital, will invest $200 million through the PIPE, by taking up a portion of SoftBank’s commitment, and also has committed to backstop any redemptions by Aurora shareholders of funds in its trust account, substantially increasing transaction completion certainty. Also participating in the PIPE is current Better investor, Activant Capital. Subject to customary closing conditions, the transaction is expected to close in the fourth quarter of 2021.

“This transaction is the beginning of an amazing new chapter in Better’s history,” said Vishal Garg, Better founder and CEO. “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. This all got started because I wanted a place for my kids to call home. And through this journey I have only grown more confident in my belief that every child on this planet deserves a place they can call home, a place where they can dream, a place where they can invite their friends to play, a place they can count on to be there when they have a bad day, and one they can come back to when something like COVID happens and they just don’t want to be alone.”

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