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As WeWork’s attempt to go public in 2019 collapsed, co-founder Adam Neumann took on much of the ridicule over creating a cultish and debauched culture that obscured the company’s financial challenges.
But, while he was not known for running a tight ship, the former CEO was noted for his acumen as a salesman, an ability that (for better or worse) attracted talented employees and billions of dollars in investor funding.
Those skills may have played an early role in the company’s current deal to go public via merger with a SPAC. While Neumann was ousted from the company in 2019, Reuters reports that a meeting between him and investor Vivek Ranadivé “piqued” the latter’s interest and eventually led to the $9 billion deal.
A refresher: On Friday, BowX Acquisition, led by Ranadivé, agreed to take WeWork public in a deal that values the combined business at $9 billion including debt—a far cry from the one-time $47 billion price tag at the company’s peak, but a step up from its $2.9 billion valuation last May.
Neumann and SoftBank are strange bedfellows, with the two locked in a fierce legal battle that was settled just a month ago. But both stand to gain from a deal. The former CEO holds an estimated 10% in the company still, valued around $790 million. And SoftBank has invested at least $18.5 billion in the co-working space. A deal with BowX would undoubtedly cut some of its losses.
What’s also fascinating about the report: BowX apparently was the only serious option to go public via merger with a SPAC. “[WeWork’s] options for a SPAC deal were limited,” the report stated. In other words, demand for WeWork was low.
But as the company is now preparing to go public, interest is firing up. Shares of the SPAC are up 16% since news of the merger broke. The dollars WeWork will receive via PIPE, or private investment in public equity, was expanded from $500 million to $800 million.
Perhaps few SPAC investors were willing to take on the risk associated with WeWork, which reportedly lost $3.2 billion in 2020. Perhaps public-market investors needed a SPAC to first step in to feel confident in the company. Public markets are really more art than science—but for now, it seems like investors are excited about plays toward pandemic recovery and hybrid work, and WeWork has been deemed a beneficiary.
SOFI TO SELL SHARES TO CLIENTS: Fintech lender SoFi agreed to go public via merger with Chamath Palihapitiya’s Social Capital Hedosophia V, a SPAC, in January. The deal valued the combined business at about $8.7 billion. Now the lender says it plans to offer clients with over $3,000 in their accounts the opportunity to invest in its public offering. Read more.
NEW NEWSLETTER ALERT: If you’re interested in corporate finance, Fortune‘s newest newsletter is for you. I hope you’ll subscribe to CFO Daily, a brief written by our new writer Sheryl Estrada. For today’s first issue, Sheryl interviewed Square CFO Amrita Ahuja to talk about the payments startup’s big bet on bitcoin. (It’s the most popular story on our site right now.)
Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com
VENTURE DEALS
- ServiceTitan, a Los Angeles-based provider of software for tradespeople, raised $500 million in funding, valuing it at $8.3 billion. Tiger Global Management and Sequoia Capital Global Equities led the round and were joined by investors including H.I.G. Growth Partners, Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital Partners LP, ICONIQ Growth, Index Ventures, and T. Rowe Price Associates.
- LIVEKINDLY Collective, a New York-based collection of plant-based food companies, raised $335 million including $135 million converted from a prior round. TPG’s The Rise Fund led the round and was joined by investors including Rabo Corporate Investments and S2G Ventures.
- Crossover Health, a San Clemente, Calif.-based health-tech company integrating virtual and in-person care for employers and health plans, raised $168 million in Series D funding. Deerfield Management Company led the round and was joined by investors including Perceptive Advisors, OrbiMed Advisors, Foresite Capital, Avidity Partners, SharesPost100 Fund, Irving Investors, and PFM Health Sciences.
- Staffbase, a Germany-based provider of software for internal communications, raised $145 million (€122 million). General Atlantic led the round and was joined by investors including Insight Partners and e.ventures.
- Ajaib, the Indonesia-based investment app, raised an additional $65 million in Series A funding. Ribbit Capital led the round. Read more.
- Idelic, a Pittsburgh-based provider of operations and safety software to the transportation industry, raised $20 million in Series B funding. Highland Capital Partners led the round and was joined by investors including AXA Venture Partners, Origin Ventures, Birchmere Ventures, TDF Ventures,
- Vibrant, an Israel-based developer of gastrointestinal treatments, raised $7.5 million in Series E funding. Unorthodox Ventures led the round.
- Sardine, a San Francisco-based provider of fraud prevention software, raised $4.6 million in seed funding. XYZ Ventures led the round and was joined by investors including 11.2 Capital, Village Global, and Coinbase Ventures.
PRIVATE EQUITY
- Wise Road Capital and its partners acquired a controlling stake in Magnachip Semiconductor, a South Korea-based display and chipmaker, in a take-private deal worth about $1.4 billion. Read more.
- Clearlake Capital Group invested in Wheel Pros, a designer, manufacturer and distributor of proprietary branded aftermarket vehicle enhancements for light trucks, SUVs, passenger cars and ATVs/UTVs. Financial terms weren't disclosed.
- CVC Capital Partners agreed to acquire a 90% stake in National Bank's Greek insurance unit in a deal that values the latter at 505 million euros ($596 million).
- Decathlon Capital Partners invested in Cartsquad, a Miami-based e-commerce distributor. Financial terms weren't disclosed.
- Euroclear agreed to acquire MFEX Group, a Stockholm-based fund distribution platform, from Nordic Capital. Financial terms weren't disclosed.
- Odyssey Investment Partners acquired SIAA (Strategic Insurance Agency Alliance), a Hampton, N.H.-based alliance of independent insurance agencies. Financial terms weren't disclosed.
- Thomas H. Lee Partners made a majority investment in Bazaarvoice, an Austin-based provider of product reviews. Marlin Equity Partners, the current majority investor, will continue to be a shareholder. Financial terms weren't disclosed.
EXITS
- Broadridge acquired Itiviti, an electronics trading platform, from Nordic Capital in a $2.5 billion cash transaction.
- Cornell Capital acquired Innovations in Nutrition + Wellness, a Dallas-based provider of R&D, manufacturing and marketing support solutions for the nutrition and wellness industry, from Rosewood Private Investments. Financial terms weren't disclosed.
- Anthem agreed to acquire myNexus, a Brentwood, Texas-based digital health company, from WindRose Health Investors. Financial terms weren't disclosed.
- ELEVEN SPORTS acquired Team Whistle, a New York-based sports media and entertainment company backed by Sky Startup Investments and Tegna. Financial terms weren't disclosed.
OTHER
- News Corp. (Nasdaq: NWSA) is nearing a deal to acquire the consumer arm of Houghton Mifflin Harcourt, a publisher of education materials, per the Wall Street Journal. Read more.
IPO
- Linklogis, a Chinese fintech, plans to raise HK$8.3 billion ($1.07 billion) via an IPO in Hong Kong. Tencent backs the company. Read more.
- FTC Solar, an Austin-based maker of solar tracker systems for solar panels, filed to raise $100 million. Read more.
- Akoya Biosciences, a Malborough, Mass.-based developer of solutions for drug discovery and clinical research, filed to raise $115 million. Telegraph Hill Partners and Piper Sandler back the firm. Read more.
SPAC
- AeroFarms, a Newark, N.J.-based vertical farming company, agreed to go public via merger with Spring Valley Acquisition, a SPAC. A deal values the combined business at $1.2 billion.
- Cazoo, a U.K.-based second-hand car selling platform, will go public via merger with Ajax I, a SPAC. A deal would value the combined business at $7 billion.
- Crucible Acquisition II and Crucible Acquisition III, two software-focused SPACs formed by the Foundry Group, filed to raise $200 million and $350 million each.
F+FS
- Denali Growth Partners, a Boston-based tech-focused investment firm, raised $203 million for its inaugural fund.
PEOPLE
- Fin VC, a San Francisco-based venture capital firm, named Ren Riley as an investment partner; Alka Gupta and Emy Donavan, as venture partners; and Luke Kornack as an associate.