Latch, a smart lock and building management software maker, announced its plans to go public this week. The company will merge with TS Innovation, a special purpose acquisition company (SPAC) that real estate owner, developer, operator and investment manager Tishman Speyer Properties launched. The transaction values Latch at an equity value of $1.56 billion post-money. Latch expects to have up to $510 million in cash upon the transaction’s completion.
Since 2014, Latch has provided enterprise software as a service (SaaS) to buildings and residents, which make their spaces better places to live, work and visit. The company has worked with a lot of the largest real estate owners as partners and investors, including Tishman Speyer and Brookfield since it started. Currently, Latch software is in more than 300,000 units in more than 35 states. One in 10 new multi-family apartments in the U.S. were built with Latch in 2019.
“Latch has successfully created an entire ecosystem around our full building operating system, devices, and partners that enhances the building experience for both owners and residents,” Latch co-founder and CEO Luke Schoenfelder said in a statement. “This transaction provides the capital for Latch to accelerate our product and market expansion and drive bookings growth.
Furthermore, Latch will be able to harness Tishman Speyer’s global real estate platform to more rapidly create new products, leveraging their vertically integrated real estate business and on-the-ground teams across the globe.
“We are fortunate to benefit from (Tishman Speyer and CEO) Rob (Speyer’s) vision and leadership and look forward to partnering with the entire Tishman Speyer team as we create value for our shareholders, customers, and residents by scaling our business in this next phase while we continue to enhance the way people interact with their spaces.”
Connectivity is key in Latch’s success
Latch’s numerous capabilities are a big reason why it’s in more than 300,000 apartment units in the U.S. Few, if any, of those capabilities would be accessible without reliable, in-building wireless connectivity, however. For example, the company’s operating system, LatchOS provides a smart access program that offers digital entry devices that work for every space in a multi-family building and supports residents, guests and staff at the entrances, common areas, garage, elevators and individual apartments.
Meanwhile, connectivity is also crucial for Latch’s guest management capabilities, which enable unattended deliveries, package management and guest reception through Latch Intercom and Latch Delivery Assistant. The company itself also recognizes the importance of connectivity—it can enable cellular connectivity through its Intercom and Hub platforms. They bring Internet access to new and current building infrastructure, which connects devices for both new and retrofit customers in more flexible ways. LatchOS’s enterprise device management capabilities also integrate smart home and sensor control that works with partners like Google Nest to help control thermostats, lighting and leak detectors.
“As a long-time real estate and capital markets investor, Tishman Speyer has helped accelerate many of the prop tech innovations reshaping our cities,” said Speyer said in a statement. “Our mission has been to partner with a growing company; one with a great team, a strong and differentiated business model and the ability to scale quickly through our platform. As both a customer and early investor in Latch, I know Luke and his talented team check all of these boxes. We look forward to serving as an incubator, operational partner and launch customer as Latch develops and expands its exceptional product lines.”
Joe Dyton can be reached at email@example.com.