Vacation rental firm Vacasa to merge with TPG-backed SPAC in $4.5 billion deal

(Reuters) -Vacation rental management company Vacasa said on Thursday it plans to go public through a merger with a blank-check firm backed by private equity giant TPG, in a deal that gives Vacasa an equity valuation of $4.5 billion.

The deal with TPG Pace Solutions Corp, a special purpose acquisition company (SPAC), will result in cash proceeds of nearly $485 million for Vacasa.

Founded in 2009, Vacasa lists, cleans and manages homes on sites such as Airbnb Inc and Expedia Group-owned Vrbo, as well as on its own marketplace.

The company reported $492 million in revenue in 2020, 64% year-over-year growth, as vacation rental becomes more popular during the pandemic when people work remotely and move away from big cities.

Chief executive Matt Roberts said the company plans to use the proceeds to invest in technology to develop innovative products and expand selections of properties in more vacation destinations in the United States.

Vacasa’s investors include Silver Lake and Riverwood Capital.

SPACs are special purpose acquisition companies that use money raised through an initial public offering to take a private company public.

On closing of the deal, Vacasa will trade under the symbol “VCSA”.

Reporting by Niket Nishant in Bengaluru and Krystal Hu in New York; Editing by Shounak Dasgupta and Sandra Maler