Neighborhood surveillance app Nextdoor announced Tuesday that it plans to public via a reverse merger with a special purpose acquisition company. The SPAC is sponsored by an affiliate of Khosla Ventures and features a private investment of $270 million from T. Rowe Price and Baron Capital Group, among others.
The definitive agreement is expected to value the social network at a whopping $4.3 billion, according to Bloomberg.
The deal is expected to close later this year. Once it does, Nextdoor will make its Wall Street debut under the ticker symbol “KIND.” Until then, the San Francisco-based company will remain focused on investing in products to drive continued acquisitions and engagement.
Founded in 2008, Nextdoor provides neighbors with a way to stay in touch that goes beyond casual conversations over the fence or in the driveway. On Nextdoor, users can stay in touch with their entire block and get advice on everything from babysitter recommendations to local sports clubs. The company currently operates in more than 275,000 neighborhoods across the U.S.
“Nextdoor has been at the forefront of cultivating ‘hyperlocal’ communities and neighborhoods since its inception, allowing neighbors to create meaningful connections – both online and offline,” Sarah Friar, CEO of Nextdoor, said in a statement.
Following the merger, Friar and her co-founders Nirav Tolia, Sarah Leary and Prakash Janakiraman plan to launch a nonprofit alongside founding investor Bill Gurley. The Nextdoor Kind Foundation will dedicate itself to helping homeowners rejuvenate their neighborhoods through targeted grants.
Morgan Stanley and Evercore Group will serve as joint-lead financial advisors to Nextdoor throughout the course of the deal.
Nextdoor has raised $447.9 million in venture capital financing to date, according to Crunchbase.
