Deal values the company at $3 billion
Doma, formerly States Title, has revealed plans to go public via a merger with special purpose acquisition company (SPAC) Capitol Investment Corp.
The proptech firm said that the definitive business combination deal, which values Doma at approximately $3 billion, will allow it to continue investing in growth, market expansion and new products. The agreement is also expected to provide up to $645 million in cash proceeds, including a fully committed PIPE of $300 million and up to $345 million of cash held in the trust account of Capitol Investment.
“This partnership with Capitol demonstrates their confidence in our strong growth position as we continue our sprint to architect the future of real estate transactions,” said Doma founder and CEO Max Simkoff.
Doma expects to retain up to $510 million of the cash proceeds, and existing shareholders will receive approximately 80% of the equity of the combined company, according to its release. Simkoff, along with the company’s management team, will continue to lead Doma. Mark Erin, chairman and CEO of Capitol, will also join the merged company’s board of directors upon completing the transaction.
“Our mission at Capitol is to help build industry-leading public companies that deliver long-term value. Doma is an industry disruptor that is well on the way to doing just that, having already emerged as a market leader in the real estate industry with its proprietary technology solutions that are revolutionizing the title and escrow process,” Erin said. “Through this transaction, Doma will be uniquely positioned to capitalize on the market opportunity to provide much-needed and long-overdue innovation to the home closing experience.”
The transaction, which has already been unanimously approved by the boards of directors of both firms, is subject to approval by Capitol’s stockholders and other customary closing conditions.