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Technology Stocks : Blank Check IPOs (SPACS)

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From: Glenn Petersen7/7/2021 5:34:13 AM
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Khosla Ventures Acquisition Co II (stock symbol: KVSB), a `SPAC that raised approximately $416 million when it went public in March 2021, has agreed to merge with Nextdoor, a neighborhood-focused social media website,

KVSB closed at $11.50 on Monday, up $1.59

Investor presentation: EX-99.2 (sec.gov)

Nextdoor to Go Public in SPAC Merger Valuing Social Network at $4.3 Billion

The neighborhood social-media app reached a deal to merge with a special-purpose acquisition company sponsored by Khosla Ventures

By Micah Maidenberg
Wall Street Journal
Updated July 6, 2021 9:20 am ET



Nextdoor said close to one in three U.S. households uses its app. PHOTO: CINDY ORD/GETTY IMAGES FOR NEXTDOOR
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Nextdoor Inc. is merging with a special-purpose acquisition company to go public in a deal valuing the social-media network at roughly $4.3 billion.

Nextdoor, which operates an app that connects people to information about their neighborhoods, reached a deal to combine with a SPAC sponsored by venture-capital firm Khosla Ventures, the companies said Tuesday.

The San Francisco-based company said it is active in more than 275,000 neighborhoods in 11 countries. In the U.S., close to one in three households uses the app, Nextdoor said. The company, led by Chief Executive Sarah Friar, depends in part on selling advertising to small businesses. It also pitches brands on reaching customers across multiple markets, according to the Nextdoor website.

The planned merger would generate about $686 million in gross proceeds for Nextdoor, about $270 million of which would come from a placement from funds and accounts advised by T. Rowe Price Associates Inc., Baron Capital Group, Dragoneer and other investment firms, Nextdoor and the Khosla SPAC said.

The deal will help Nextdoor hire more employees, invest in tools to generate revenue and further develop its products, the company said. “We remain focused on optimizing our strategy and investing in products to drive continued neighbor and organization acquisition and engagement,” Ms. Friar said.

Nextdoor was valued at around $2.2 billion as of September 2019, according to PitchBook Inc.

Going public through SPACs, or shell companies that raise money and list on an exchange in order to merge with a private firm and take it public, has soared in popularity. Some SPACs have struggled recently to find quality merger partners.
“We have long focused on partnering with cutting-edge, category-defining companies with tremendous growth potential, strong management teams and, importantly, clearly defined missions,” said Vinod Khosla, managing director at his namesake venture firm and founder of the shell-company that will merge with Nextdoor.

Nextdoor’s combination with the Khosla SPAC is expected to be complete in the fourth quarter. Ms. Friar will continue to lead Nextdoor and Finance Chief Mike Doyle will also continue to handle that job, the companies said.

Nextdoor to Go Public in SPAC Merger Valuing Social Network at $4.3 Billion - WSJ
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