The Wall Street Journal: Mortgage lender Better to go public through SPAC


Startup mortgage lender Better, whose valuation has swelled in the private markets, said Tuesday that it plans to go public by merging with a special-purpose acquisition company.

Better Holdco Inc., which operates a digital platform for mortgages and related services, plans to merge with Aurora Acquisition Corp. 

 , a SPAC sponsored by the investment firm Novator Capital, the companies said. The deal, reported Monday by the Wall Street Journal, values Better at roughly $6.9 billion pre-new money, up from $4 billion late last year.

SoftBank Group Corp. 

 , which recently invested $500 million in Better as part of a deal making sprint, could put in an additional $1.3 billion through what is known as a PIPE, or private investment in public equity, a common feature of SPAC mergers. (Better could place $400 million of that with other investors.) The remaining $200 million of the $1.5 billion PIPE is to come from Aurora, whose sponsor is the investment vehicle of Icelandic billionaire Thor Bjorgolfsson.

Better would raise nearly $800 million in new capital in the deal, with an additional roughly $950 million in proceeds going to cash out existing shareholders. As part of the transaction, customers who previously took out a mortgage from Better would be able to buy stock in the company through a direct share purchase program. Better’s co-founder and chief executive, Vishal Garg, wouldn’t sell shares in the offering.

An expanded version of this report appears on

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