Vacation rental management platform Vacasa has entered into an agreement to become a publicly traded company through a business combination with TPG Pace Solutions, a special purpose acquisition company. Upon closing of the transaction, the combined company is expected to be publicly traded under the ticker symbol “VCSA.” The transaction implies a pro forma equity value for Vacasa of approximately $4.5 billion and capitalizes the business with approximately $485 million in gross cash proceeds to fund the company’s future growth plans.
“Vacasa is reimagining the vacation rental experience through our end-to-end technology platform,” said Matt Roberts, CEO, Vacasa. “The integration of our purpose-built technology with our local, expert service teams brings exceptional care and greater returns to our homeowners, delivers a consistent and reliable experience to our guests, and helps us offer a large supply of professionally managed homes for our distribution partners. As more second homeowners share their homes with guests for the first time, and travelers increasingly prefer to stay at vacation rentals, we believe our partnership with TPG Pace Solutions will help accelerate our growth and the enhancement of our technology offerings for homeowners and guests.”
TPG Pace Group, the dedicated permanent capital platform for TPG, brings deep experience and a proven track record of identifying markets at inflection points and supporting companies well-positioned to leverage structural market changes, according to Vacasa. To date, TPG Pace Group has sponsored seven special purpose acquisition companies.
“Vacasa has established a strong strategic position in a large, fragmented market, providing the company with powerful tailwinds for growth,” said Karl Peterson, non-executive chairman/director, TPG Pace Solutions, and managing partner, TPG Pace Group. “TPG has a long history of supporting high-growth companies, including consumer internet marketplaces, and new economy travel and leisure businesses. Leveraging our extensive public market experience, we believe our partnership will further solidify Vacasa as a scaled hospitality brand in vacation rentals. We’re excited to work with Matt and the entire Vacasa team as we transition the company to the public equity marketplace.”
Joerg Adams, managing director at Silver Lake and a member of Vacasa’s board of directors, said, “The team at Vacasa has shown an ability to drive rapid growth by transforming the vacation rental experience. We believe the company’s differentiating investments in technology and automation will further improve efficiency and enhance the experience of both vacation homeowners and guests.”
In 2021, Vacasa estimates its gross booking value to be approximately $1.6 billion on five million nights sold. The company forecasts a revenue CAGR of 31% from 2021 to 2023, with revenue growing from $757 million in 2021 to $1.3 billion by 2023.
Upon closing of the business combination, Peterson will join the Vacasa board of directors.
J.P. Morgan Securities LLC acted as lead financial advisor to Vacasa. PJT Partners LP also acted as financial advisor to Vacasa. Deutsche Bank Securities Inc. and TPG Capital BD LLC acted as financial advisor to TPG Pace Solutions. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and TPG Capital BD LLC, acted as capital markets advisors and PIPE placement agents to TPG Pace Solutions.