Carsharing Marketplace Getaround to Go Public in $1.2 Billion SPAC deal

Skift grip

Although the SPAC market has recently experienced significant difficulties, the IPO of Getaround is a sign that some travel companies are looking beyond market instability.

Rashaad Jordan

Getaround, a digital car-sharing marketplace, will go public in the United States through a merger with a blank check company that values ​​the combined entity at around $1.2 billion, the companies announced on Wednesday. .

The deal with InterPrivate II Acquisition Corp will bring Getaround up to $434 million in gross proceeds.

Special Purpose Acquisition Companies, or SPACs, are listed but have no business activity except finding a private company to go public and allowing it to bypass the scrutiny that comes with an IPO. traditional stock market.

Getaround, founded in 2009, manages a digital platform allowing its customers to share vehicles in more than 950 cities around the world. The company said it would use the proceeds to invest in products and expand into new markets.

The SPAC market has slumped since some high-profile blank check listings collapsed in generally gloomy market conditions. Interest in what was once one of the hottest trends on Wall Street has also waned amid heightened regulatory scrutiny.

Goldman Sachs Group Inc earlier this week said it was reducing its involvement with blank check companies as the U.S. Securities and Exchange Commission continues to crack down with new draft rules.

After the closing of the agreement, Getaround will be listed on the New York Stock Exchange under the symbol “GETR”.

(Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta)

This article came from Reuters and has been legally licensed through Industry Dive Content market. Please direct all licensing questions to [email protected].