Germany: Alternative accommodation marketplace HomeToGo has announced that it has successfully completed its business combination with special purpose acquisition company [SPAC] Lakestar SPAC I and begun trading on the Frankfurt Stock Exchange under the ticker symbols “HTG” and “HTGW” respectively.
As previously revealed, HomeToGo is going public in a €1.2 billion [$1.41 billion] transaction, and consequently, the combined company will continue operating as HomeToGo.
Under the terms of the transaction, HomeToGo will receive approximately €250 million [$295 million] in gross proceeds, which are expected to be invested into growth initiatives intended to “significantly broaden” HomeToGo’s existing service offering and further enhancer the alternative accommodation ecosystem.
It is also believed that HomeToGo could potentially reach an enterprise value of €861 million [$1.01 billion].
Dr Patrick Andrae, co-founder and CEO of HomeToGo, said: “Today marks an exciting new chapter for HomeToGo as we hit the pivotal milestone of joining the Frankfurt Stock Exchange. As a public company, we will be even better suited to make the world’s incredible vacation homes easily accessible to everyone.
“HomeToGo is exceptionally positioned to seize a significant market opportunity as high-quality, multi-purpose and unique vacation rentals have become the new zeitgeist. Hitting this milestone is a testament to what we have built: the world’s largest selection of alternative accommodation powered by a state-of-the-art product, engaging customer experience, strong relationships with our trusted partners and, most importantly, an outstanding team.
“I would like to thank our dedicated investors, the Lakestar SPAC I team, its shareholders and the PIPE investors for their support and trust in us throughout this exciting phase of our journey. Serving our customers with the right product while ensuring the success of our business partners has and always will be at our core.
“We are looking forward to creating long-term, sustainable value for all our stakeholders, and providing new technology solutions to our partners to make the entire alternative accommodation ecosystem even more successful,” he added.
Christoph Schuh, chairman of the new supervisory board of HomeToGo, said: “With its market leading position in the fast-growing alternative accommodation business, HomeToGo is perfectly positioned for the next level of growth as a public company. The very strong management team of HomeToGo has demonstrated resilience during the pandemic, delivering resurgent growth in a challenging environment.
“I’m looking forward to supporting the management board on their future journey,” he added.
In addition to Dr Andrae, co-founder, chief strategy officer [CSO] and travel tech veteran, Wolfgang Heigl, chief operating officer [COO] Valentin Gruber, and chief financial officer [CFO] Steffen Schneider will all now join the new HomeToGo management board.
Founded in 2014 and headquartered in Berlin, HomeToGo operates a marketplace for alternative accommodation that connects millions of travellers searching for their perfect place to stay with thousands of inventory suppliers across the globe. The company operates localised websites and apps in 23 countries.
The much-publicised business combination was first announced in July when HomeToGo entered into a definitive agreement to merge with Lakestar SPAC I.
European venture fund Lakestar joins 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 now 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.