Vacasa, the large vacation rental company with a strong presence in Boise, says it plans to go public this fall.
The deal, which would come via a merger with a special purpose acquisition company called TPG Pace Solutions, would value Vacasa at about $4.5 billion. Wall Street has seen a flurry of these so-called SPAC mergers this year – which merge a private company with a shell company that is publicly traded to bring the private company on to the public stock market without a traditional IPO.
The deal would happen “as soon as possible,” according to company CEO Matt Roberts.
Vacasa manages about 30,000 properties and is based in Portland. Boise native Eric Breon founded the firm before exiting the role last year. A new CEO, Roberts, took over just before the COVID-19 pandemic began broadly impacting the US.
Roberts told CNBC that a recent rise in COVID-19 stats and the Delta variant haven’t hurt the business.
“The industry in total is experiencing significant demand such that occupancy rates are super high,” Roberts said.
According to industry publication Skift, Vacasa is not profitable – and expects to lose $49 million this year. Skift says Vacasa does not expect to turn a profit until 2023 at the earliest. It only controls less than 1% of the vacation rental business.