I'm latching on to you... If Disclosure's 2012 hit made you feel some type of way, this 2021 SPAC will unlock all the feels. Latch will be the first pure-play "lock stock" — it literally makes smart-locks for your door.
- Hardware: Latch's "access devices" are basically techy door handles that can be placed on any door, from your apartment to a hotel gym.
- Software: Through Latch's app, you can unlock connected doors with your smartphone, Apple Watch, or by typing a door code (lame).
SPACial relationship... Special Purpose Acquisition Companies (aka: SPACs) go public for the sole purpose of one day acquiring a real company and taking it public via marriage. In this case, a SPAC called TS Innovation Acquisitions (they always have ugh-worthy names) is snatching Latch.
- Latch gets to go public without a traditional (lengthier) IPO. Aaaand: it's snagging $450M in cash at a $1.5B valuation.
- TS Innovation gets a promising tech company. While Latch is unprofitable, it forecasts sales will nearly 3X this year and hit $877M in 2025.
The mobile-everything economy is here... From paying for coffee, to managing finances, to boarding planes, our phones are our passports for the modern world. The coronaconomy has made us even more comfortable with tapping for nearly everything — Latch wants that to include keys. So far, Latch’s products are in less than 1% of the 47M rental units in the US. But it couldn't have chosen a friendlier time to sell its contactless tech to hotels, gyms, and real-estate companies.