WeWork returns to the public markets with a SPAC led by the owner of the Sacramento Kings

WeWork is preparing to list on the public markets a year and a half after a botched attempt at an initial public offering—but this time, it’s through the hottest process of the last 12 months: merging with BowX Acquisition, a SPAC backed by Bow Capital Management, both companies announced Friday.

The deal values the combined business at about $9 billion including debt—a sizable decrease from the co-working space’s $47 billion valuation in 2019, but a significant uptick from when SoftBank valued it at $2.9 billion in May.

WeWork will receive as much as $1.3 billion in cash as part of the deal, including $800 million via private investment in public equity from investors including Insight Partners, Starwood Capital Group, Fidelity Management & Research Company, Centaurus Capital, and BlackRock.

The pandemic was not an easy time for the company, as it laid off employees and closed locations.

Still, the company says it maintained its revenue (excluding in China where WeWork sold control of the business last year) at $3.2 billion in 2020, the same amount it posted in 2019. Adjusted losses before interest, taxes, depreciation, and amortization also clocked in at about $1.8 billion, close to the $1.9 billion from the year prior.

Vivek Ranadivé, who leads Bow Capital Management (and is the owner of the NBA’s Sacramento Kings), will join WeWork’s board, as will Insight Partners Managing Partner Deven Parekh.

ROBINHOOD ANGLES FOR AN ON-BRAND IPO: A few days ago, I commented that Robinhood’s brand has been about “democratizing finance”—a lofty mission statement that is somewhat at odds with the traditional IPO process (which gets a lot of flack for allocating shares to clients that are favored by the banks underwriting the deal). “How Robinhood will structure its IPO (and whether it will allocate shares to its own base of customers, for example) will no doubt come under the spotlight,” I wrote.

On Thursday, Reuters reported that the stock-trading app is indeed aiming to offer its 13 million or so users a chunk of its shares. It wouldn’t be the first to do so: Lyft, Uber, and Airbnb also offered shares to their drivers and hosts in their debuts.

But this could set a new precedent for the stock-trading company. Robinhood is reportedly creating a unique system with the ambitions of allowing traders to directly buy into IPOs of other companies as well—a move that would take a bite out of controls typically held by banks. Read more.

Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com

VENTURE DEALS

- Gorillas,  Berlin-based grocery and essentials delivery service, raised 244 million euros ($287 million) in Series B funding. Coatue Management, DST Global, and Tencent Holdings led the round.

- ABL Space Systems, an El Segundo, Calif.-based developer of launch vehicles for the small satellite industry, raised $170 million in Series B funding, valuing it at $1.3 billion. T. Rowe Price Associates led the round and was joined by investors including Fidelity Management & Research.

- Gyroscope Therapeutics, a London-based company focused on treating diseases of the eye, raised $148 million (£107.8 million) in Series C funding. Forbion’s Growth Opportunities Fund led the round and was joined by investors including Sofinnova Investments, T. Rowe Price Associates, Tetragon Financial, Fosun Pharma, Cambridge Innovation Capital, and Syncona. 

- Chainalysis, a New York-based blockchain analysis company, raised $100 million in Series D funding. Paradigm led the deal, valuing the company at $2 billion. Addition, Ribbit, and TIME Ventures also participated.

- Pilot, a San Francisco-based accounting company, raised $100 million, valuing it at $1.2 billion. Bezos Expeditions led the round and was joined by investors including Whale Rock Capital, Sequoia, and Index Ventures. 

- Linktree, a Australia-based maker of a platform for unifying communication platforms, raised $45 million in Series B funding. Index Ventures led the round and was joined by investors including Coatue, AirTree Ventures, and Insight Partners. 

- Greenwood, an Atlanta-based digital banking platform for the Black and Latino community, raised $40 million in Series A funding. Investors included Truist, Bank of America, PNC, JPMorgan Chase, Wells Fargo, Mastercard, Visa, FIS, Popular, TTV Capital, and the SoftBank Group Corp's SB Opportunity Fund.

- Fishbrain, a Stockholm-based sport fishing social network and digital marketplace, raised $31 million in funding. Investors included Consensus Småbolagsfond and Adrigo Asset Management, as well as B Capital Group and SoftBank Ventures Asia. 

- Skycatch, a San Francisco-based 3D scanning service using drones, raised $25 million. ADB Ventures and Wavemaker led the round. Read more.

- Foodsmart, a San Francisco-based personalized telenutrition and foodcare company, raised $25 million in Series C funding. Advocate Aurora Enterprises led the round.

- Holberton, a San Francisco-based software engineering education company, raised $20 million in Series B funding. Redpoint eventures led the round and was joined by investors including  Pearson Ventures, Daphni, Imaginable Futures, Reach Capital, and Trinity Ventures.

- Polly, a San Francisco-based provider of software to the mortgage industry, raised $15 million in Series A funding. 8VC led the round and was joined by investors including Menlo Ventures, Conversion Capital, Meritech Capital, Fifth Wall, and Base10 Partners.  

- Baton, a San Francisco-based startup focused on truckers, raised $10.5 million in Series A funding, valuing it at $50 million. Investors include Prologis, Ryder, Lineage Logistics, Jett McCandless (Project44 CEO), and Shoaib Makani (KeepTruckin’ CEO). Read more.

- RECUR, a Detroit-based company for allowing fans to buy and sell digital collectibles, raised $5 million. Defi Alliance led the round and was joined by investors including Gary Vaynerchuk, Courtside VC, Joseph Lubin, Gemini, Scott Belsky (Founder of Behance), JST Capital, Delphi Digital, Volt Capital, Nascent, and CMT Digital, Hashed.

- VersusGame, a San Francisco-based prediction betting app, raised an additional $6 million in seed funding from investors including Sukhinder Singh Cassidy (former President of StubHub) and Kevin Mayer (former CEO of TikTok).

- Creative Juice, a financial network for creators, raised $5 million in seed funding. Inspired Capital and Index Ventures co-led the round and were joined by Slow Ventures, Box Group, Jimmy Donaldson ‘MrBeast’, Preston Arsement, Carter Sharer, Shelby Church, Graham Stephan, Night Media, Scooter Braun, and Justin Kan (Twitch co-founder).

- Trava, an Indianapolis-based cyber risk management and insurance platform, raised $3.5 million in seed funding. TDF Ventures led the round and was joined by investors including High Alpha Capital and M25.

- Gloria, an online platform for soccer fans, raised $3 million in seed funding. Seven Seven Six led the round and was joined by investors including Initialized Capital.

- Nuro, a self-driving car startup, raised funding from Chipotle Mexican Grill as part of its previously announced $500 million Series C round.

PRIVATE EQUITY

- Hillhouse Capital agreed to acquire Royal Philips’ domestic-appliance unit in a deal that values the division at 3.7 billion euros ($4.4 billion).

- Ivanti, backed by Clearlake Capital Group, acquired Cherwell Software, a Colorado Springs, Co.-based enterprise service management solution. Financial terms weren't disclosed.

- Hornetsecurity Group, backed by Providence Strategic Growth, acquired Zerospam, a California-based email spam protection company. Financial terms weren't disclosed.

- DPI Off-Road Brands, a portfolio company of Dublin Clark, acquired JT’s Parts and Accessories, a Cashmere, Wash.-based seller of gear for heavy duty vehicles. Financial terms weren't disclosed.

- Questex, backed by Midocean Partners, acquired the assets of Digital Signage Expo, a maker of display technologies. Financial terms weren't disclosed.

- Routeware, a portfolio company of Banneker Partners, acquired ReCollect, a Canada-based provider of customer communication and education tools for the waste management industry. Financial terms weren't disclosed.

- TPC Training, a portfolio company of Frontenac, acquired Above Training, an Orem, Ut.-based digital learning company. Financial terms weren't disclosed.

EXITS

- Apollo Global Management is weighing a sale of McGraw-Hill Education, a New York-based textbook publisher, for $6 billion including debt, per Bloomberg. Read more.

- Partners Group Holding and Canada’s Public Sector Pension Investment Board are weighing a potential sale of Cerba HealthCare, a French laboratory business, for about 3 billion euros ($3.5 billion), per Bloomberg. Read more.

- Slate Asset Management acquired Annaly Capital Management’s Commercial Real Estate Business for $2.3 billion.

- News Corp. (Nasdaq: NWSA) agreed to acquire Investor's Business Daily, a Los Angeles-based newspaper, from O'Neil Capital Management. Financial terms weren't disclosed.

OTHER

- II-VI Incorporated (Nasdaq: IIVI) agreed to acquire Coherent (Nasdaq: COHR), a Santa Clara, Calif.-based providers of lasers and laser-based technologies, for about $6.3 billion.

- Athletic, a sports-media outlet, has been in talks to merge with Axios, a news startup, per the Wall Street Journal. A deal could involve going public via a SPAC. Read more.

IPO

- UiPath, a New York-based process automation company, filed to raise $1 billion. Accel Partners and Earlybird Management back the firm. Read more.

- Diversey Holdings, a Fort Mill, S.C.-based provider of cleaning and hygiene products,  raised $692 million in an offering of about 46.2 million shares priced at $15 apiece, below its previously sought $18 to $21 apiece range. Bain Capital backs the firm. Read more.

 - Olink Holding, a Sweden-based biotech, says it plans to raise $353 million in an offering of 17.6 million ADSs (25% insider sold) priced at $20, above its previously stated $16 to $18 range. Read more.

- Cricut, a South Jordan, Ut.-based maker of design apps and crafting machines, now plans to raise $322 million in an offering of 15.3 million shares (13% insider sold) priced at $20, the low end of its range. Read more.

- Vizio, an Irvine, Calif.-based maker of low-cost electronics, raised $317 million in an offering of 15.1 million shares (50% insider sold) priced at $21, the low end of its range. Foxconn backs the firm. Read more.

- Achilles Therapeutics, a London-based biotech focused on solid tumors, plans to raise $176 million in an offering of 9.8 million ADSs priced between $17 to $19. Syncona and RA Capital Management back the firm. Read more.

- ThredUp, an Oakland, Calif.-based marketplace for second hand clothing, raised 168 million in an IPO of 12 million shares priced at $14 apiece, the top-end of its range. Goldman Sachs backs the firm. Read more.

- SEMrush Holdings, a Boston-based maker of software for digital marketing, raised $140 million in an offering of 10 million shares priced at $14, the low end of its range. Greycroft backs the firm. Read more. 

- FCB Group, China Evergrande Group’s home and car selling platform, is weighing an IPO in the U.S. this year, per Bloomberg. The division is currently valued at 130 billion yuan ($20 billion). Read more.

SPAC

- Reservoir Media Management, a New York-based music publisher, is in talks to go public via merger with Roth Ch Acquisition II. A deal could value the firm at $700 million, per Bloomberg. Read more.

- Landcadia Holdings IV, a SPAC from the CEOs of Landry's and Jefferies focused on entertainment businesses, raised $500 million.

- Project Energy Reimagined Acquisition, a blank check company led by the managing partner of Edgewater Investments focused on the electric grid, filed to raise $300 million.

- Aperture Acquisition, a blank check company targeting financials, business services, real estate, and tech, filed on Thursday with the SEC to raise up to $350 million in an initial public offering.

- Redwire, a Jacksonville, Fla.-based space solutions, will go public via merger with Genesis Park Acquisition, a SPAC that values it at $615 million.

- MSD Acquisition, a blank check company from MSD Partners, raised $500 million.

PEOPLE

- Vista Equity, an Austin-based tech-focused investment firm, revealed that Alan Cline, who co-led its Endeavor fund, and Rob Rogers, who co-led the round its Foundation fund, are stepping back into advisory roles. Rachel Arnold will become a co-head on Endeavor while Patrick Severson will co-lead Foundation.

- Pine Island Capital Partners, a Ft. Lauderdale, Fla.-based private investment firm, announced that former NASA Administrator Major General Charles F. Bolden Jr., USMC (Ret.) joined as a partner.