Startup mortgage lender Better, whose valuation has swelled in the private markets, said Tuesday that it plans to go public by merging with a special-purpose acquisition company.
Better Holdco Inc., which operates a digital platform for mortgages and related services, plans to merge with Aurora Acquisition Corp. , a SPAC sponsored by the investment firm Novator Capital, the companies said.
The deal, reported Monday by The Wall Street Journal, values Better at roughly $6.9 billion pre-new money, up from $4 billion late last year.
Better would raise nearly $800 million in new capital in the deal, with an additional roughly $950 million in proceeds going to cash out existing shareholders.
The company’s management expects the new funds to help accelerate its move into related services, including home and title insurance.
Thor Bjorgolfsson, Better’s, Vishal Garg
Aurora Acquisition Corp, Novator, Wall Street, SoftBank Group Corp