Opendoor, an online real estate transaction company which offers to buy houses on demand, announced it will go public through a merger with Social Capital Hedosophia Holdings II.
Founded in 2014, Opendoor soared in the last few years, generating a $4.7 billion revenue last year. Despite being a dominant player in the "iBuying" space, Opendoor is still suffering losses, which led to lay-offs for a third of its employees in April. It has also faced additional headwinds in recent years as competitors like Redfin and Zillow have entered the market.
The deal values Opendoor at an enterprise value of $4.8 billion and is expected to provide a total of $1 billion in cash proceeds, including a committed PIPE of $600 million. Up to $414 million of cash will be held in the trust account of SCH.