Vacasa Will Sport a $4.5 Billion Valuation
Vacasa, a trip rental startup, is gearing as much as launch an preliminary public providing this fall by way of a SPAC cope with TPG Tempo Options (TPGS). The $400 million deal offers the corporate a valuation of $4.5 billion. The SPAC market cooled off a bit within the spring after a frenzy earlier this 12 months, however the variety of SPAC transactions is choosing up pace once more.
Vacasa is attempting to capitalize on the rise in demand for journey because the financial system reopens. It is usually benefiting from a rise in demand for different lodging lodging. Some shoppers wish to journey however are nonetheless cautious of staying in inns due to COVID-19, so they’re turning to platforms like Vacasa and Airbnb (ABNB).
Vacasa’s Plans for its Funding
Vacasa has been mulling an IPO by way of a SPAC transaction since April. It opted to maneuver ahead with TPG, partly as a result of the corporate was an early investor in Airbnb, Uber (UBER), and different startups within the journey and transportation industries. TPG Tempo Group additionally has a observe report within the SPAC trade, and has already sponsored seven offers.
Vacasa desires to make use of a number of the proceeds from the deal to spice up its place out there by rising the quantity of properties it affords for rental. It additionally desires to spend money on its expertise and develop its workforce.
Questions Concerning the Delta Variant Loom
Heading towards Vacasa’s public debut, some traders are involved concerning the Delta variant’s affect on demand for journey. The infectious variant of COVID-19 is spreading within the US and world wide. Up to now, Vacasa says it has not seen demand for journey sluggish on account of considerations concerning the variant and it hopes this development will proceed. Vacasa expects to lodge gross bookings of $1.6 billion in 2021.
Vacasa is the newest in a string of startups going public by way of SPAC transactions. With a number of weeks left earlier than Vacasa’s debut, traders can be paying shut consideration to traits within the journey trade world wide.
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