Opendoor’s $4.8 Billion Merger With Social Capital Hedosophia

Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to SCH, and Latham & Watkins LLP acted as legal advisor to Opendoor.

Social Capital Hedosophia Holdings Corp. II (“SCH”) has entered into a definitive business combination agreement with Opendoor Labs Inc. (“Opendoor” or the “Company”). The transaction values Opendoor at an enterprise value of $4.8 billion, and is expected to provide up to $1.0 billion in cash proceeds, including a fully committed PIPE of $600 million and up to $414 million of cash held in the trust account of SCH.

Connaught acted as financial advisor, Citi acted as financial advisor to Opendoor.

Social Capital Hedosophia II is a partnership between the investment firms of Social Capital and Hedosophia. Social Capital Hedosophia II unites technologists, entrepreneurs and technology-oriented investors around a shared vision of identifying and investing in innovative and agile technology companies.

Opendoor’s mission is to empower everyone with the freedom to move. Since 2014, Opendoor has provided people across the U.S. with a radically simple way to buy, sell or trade-in a home. Opendoor currently operates in 21 markets in the U.S. and is headquartered in San Francisco.

The Skadden team advising SCH included M&A partners Howard Ellin (New York; Picture) and Christopher Barlow (New York), and associates Alexandria Robertson (New York) and Sean Coburn (New York); Corporate partner Gregg Noel (Palo Alto/Los Angeles); Tax partner Victor Hollender (New York); Capital Markets partner Michelle Gasaway (Los Angeles) and associate Griffin Drake (Los Angeles); and Executive Compensation and Benefits partner Joseph Yaffe (Palo Alto/Los Angeles) and associate Michael Wiseman (New York).

Involved fees earner: Christopher Barlow – Skadden Arps Slate Meager & Flom; Sean Coburn – Skadden Arps Slate Meager & Flom; Griffin Drake – Skadden Arps Slate Meager & Flom; Howard Ellin – Skadden Arps Slate Meager & Flom; Michelle Gasaway – Skadden Arps Slate Meager & Flom; Victor Hollender – Skadden Arps Slate Meager & Flom; Gregg Noel – Skadden Arps Slate Meager & Flom; Alexandria Robertson – Skadden Arps Slate Meager & Flom; Michael Wiseman – Skadden Arps Slate Meager & Flom; Joseph Yaffe – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: OpenDoor Labs Inc.;

Author: Ambrogio Visconti