HomeToGo to receive $295m funding injection as SPAC moves closer

Germany: A special purpose acquisition company [SPAC] merger between vacation rental distribution channel and metasearch engine, HomeToGo, and listed shell company Lakestar SPAC I has moved a step closer after shareholders unanimously backed the transaction.

Although proceeds from the deal were reduced by investor redemptions, Berlin-based travel tech startup HomeToGo will receive a funding injection of €250 million [$295 million] from the transaction, promoted by venture capitalist Klaus Hommels, according to Reuters.

The upcoming business combination was first announced in July when HomeToGo entered into a definitive agreement to merge with Lakestar SPAC I – a transaction which is expected to close in the third quarter of 2021.

Under the terms of the transaction, HomeToGo would reportedly reach an enterprise value of €861 million [$1.01 billion] and the combined company would be listed on the Frankfurt Stock Exchange under the ticker “HTG”.

European venture fund Lakestar is joining other investors and family offices specialising in tech investments and tech entrepreneurs in committing €75 million [$88 million] in private investment in public equity. Lakestar SPAC I investors and founders are expected to retain a 25 per cent stake in the combined company.

Last month, Rachel Tabellion, head of business development at HomeToGo, joined the STRz podcast to discuss her company’s Revenge Travel report with AirDNA and the winners and losers from the revenge travel phenomenon, as well as the latest on the SPAC merger with Lakestar.