SPAC Traveler-Hungry Altitude Talks about SoftBank-Backed Car Sharer Getaround Public

Getaround, a car-sharing startup backed by SoftBank Group Corp, is in talks to go public through a merger with special purpose acquisition company (SPAC) Altitude Acquisition Corp, people familiar with the matter said.

The company has confidentially sought investors to participate in the deal through a private placement in public equity, or PIPE, at a valuation of around $1.7 billion, one of the sources told Reuters.

Sources cautioned against terms changing and stated that there wasn’t a guarantee of a deal. Because the negotiation are confidential, they asked to remain anonymous.

Altitude Acquisition Corp did not respond to requests for comment. Getaround didn’t immediately reply to our requests for comment.

Getaround, a San Francisco-based peer-to-peer vehicle-sharing platform that lets car owners rent their vehicles on an hourly and daily basis was founded in 2009. With 6 million global users, it operates in more than 100 U.S. and 170 European cities. Turo Inc is one of the major competitors. It registered this month for its initial public offering.

Getaround raised over $800,000,000 in prior rounds of fundraising from investors such as Softbank and Menlo Ventures. The last time Getaround was at $1 billion was September 2020 according to PitchBook data.

Getaround, like many travel companies, was affected by the COVID-19 pandemic. The company saw its customer demand fall by up to 75%. As travel restrictions were eased by pandemics, the company’s business recovered.

Altitude, which sought to merge with a travel-related company in December 2020 through an IPO on Nasdaq, raised $300 million.

More context: $300 Million IPO Will Target Travel Company Acquisitions and Investments

Reporting by Krystal H in New York, Editing by David Gregorio

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Krystal Hu, Reuters writer and legally licensed by Industry Dive’s publisher network. Please direct all licensing questions to [email protected]

Photo credit: Getaround lets you rent a car in Paris. According to Reuters, the car-sharing company is currently in discussions with Altitude Acquisition Corp (SPAC) about going public. Getaround

Publiated at Wed 25 August 2021 23.08:27 +0000

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