SoftBank Group Corp-backed Better HoldCo said on Tuesday it will go public through a merger with a blank-check firm sponsored by investment firm Novator Capital, valuing the mortgage startup at $7.7 billion.
As part of the deal with Aurora Acquisition Corp, SoftBank will invest $1.5 billion, giving Better a pre-money valuation of $6.9 billion. Novator will invest $200 million.
The deal will provide $778 million in proceeds for Better.
Founded in 2016, Better offers mortgage and insurance products to homeowners through its online platform. It says its customers can get their loans closed in as little as two weeks.
SPACs are listed companies that have no regular business operations but to find a company to merge with, thereby taking the target company public.
BofA Securities is the financial adviser to Better, while Barclays advised Aurora.