Vacasa to Go Public in $4.5 Billion SPAC Merger on Heels of Vacation Rentals Surge
Skift Take
Vacasa has reached a remarkable milestone with its plan to go public, having parlayed the booming interest in vacation rentals during the pandemic. Yet the full-service property management sector is crowded, and going public is only the start of the journey.
Vacasa, the largest full-service vacation rental property management company in the U.S., said on Thursday it planned to merge with blank check company TPG Pace Solutions.
The transaction is set to give Vacasa, a startup based in Portland, Oregon, an equity value of $4.5 billion. The deal is expected to lead to its public listing on the New York stock exchange under the ticker symbol VCSA.
Vacasa's merger with the special-purpose acquisition company (SPAC) is set to close "as soon as practicable," according to a statement. CEO Matt Roberts will continue to lead the company. The combined company forecasts it will have $485 million in gross cash proceeds. A private investment in public equity, or PIPE, transaction, and a forward purchase agreement will contribute about $200 million to the deal.
Vacasa has disclosed raising $634.5 million in private equity funding — more than any other startup of its category. Private equity firms Silver Lake, Riverwood Capital, Level Equity, Altos Capital, Adams Street, and NewSpring Capital, together with founder Eric Breon and management, expect to roll all of their equity and plan to retain an 88 percent ownership of the company following the transaction's close. That's slightly more than the typical
