Nextdoor Inc. is merging with a specialty acquisition company to go public in a deal valuing the social media network at around $ 4.3 billion.
Nextdoor, which operates an app that connects people to information about their neighborhoods, has reached an agreement to combine with a KVSB SPAC,
sponsored by venture capital firm Khosla Ventures KVSA, the companies said on Tuesday.
MarketPulse: Nextdoor goes public through merger with SPAC Khosla Ventures Acquisition Co. II
The San Francisco-based company said it operates in more than 275,000 neighborhoods in 11 countries. Nearly one in three households in the United States uses the app, Nextdoor said. The business, headed by CEO Sarah Friar, depends in part on selling advertising to small businesses. It also drives brands to reach customers in multiple markets, according to the Nextdoor website.
The planned merger would generate approximately $ 686 million in gross proceeds for Nextdoor, of which approximately $ 270 million would come from a placement of funds and accounts advised by T. Rowe Price Associates Inc., Baron Capital Group, Dragoneer and others. investment companies, Nextdoor and said the SPAC Khosla.
The deal will help Nextdoor hire more employees, invest in tools to generate income and further develop its products, the company said. “We remain focused on optimizing our strategy and investing in products to foster the continued acquisition and engagement of neighbors and organizations,” said Friar.
Nextdoor was valued at around $ 2.2 billion in September 2019, according to PitchBook Inc.
An extended version of this report appears on WSJ.com.
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