Southeast Asia online property platform PropertyGuru has agreed to go public through a merger with Bridgetown 2 Holdings Ltd, a NASDAQ-listed special purpose acquisition company backed by billionaires Peter Thiel and Richard Li.

The companies announced that they have entered into a business combination agreement and upon closing, the combined company is expected to begin trading on the New York Stock Exchange (NYSE).

The combined company will have an enterprise value of approximately $1.35 billion and an equity value of approximately $1.78 billion at closing, the companies said in a statement dated July 24.

The transaction is expected to deliver up to $431 million of gross proceeds through the contribution of up to $299 million of cash held in Bridgetown 2’s trust account, a concurrent $100 million private placement (PIPE) of common stock anchored by Baillie Gifford, Naya, REA Group, Akaris Global Partners, and one of Malaysia’s largest asset managers, priced at $10.00 per share.

Australia Securities Exchange-listed digital firm REA Group has also committed to an additional $32 million investment. KKR, TPG Group and REA Group will roll 100 percent of their equity into the combined company, demonstrating their continued commitment to the company’s growth strategy.

The transaction is expected to close in the fourth quarter of 2021 or the first quarter of 2022, subject to regulatory and stockholder approvals, and other customary closing conditions.

PropertyGuru’s management team, led by Chief Executive Officer and Managing Director Hari V. Krishnan and Chief Financial Officer Joe Dische will continue to lead the public company after the completion of the transaction.

“We have established a market leadership position in the Southeast Asian property ecosystem and a track record of revenue growth. Much of our success is the result of our investment in technology over the years and capturing strategic growth opportunities in recent times,” Hari said.

Founded in 2007, PropertyGuru has grown to become Southeast Asia’s number one digital property marketplace with leading positions in Singapore, Vietnam, Malaysia, and Thailand. The company currently hosts more than 2.8 million monthly real estate listings and serves 37 million monthly property seekers and 49,000 active property agents across the five largest economies in Southeast Asia – Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

PropertyGuru provides digital property marketplaces to match buyers and tenants with sellers and landlords; digital marketing services for property agents and developers; SaaS-based sales process automation for property developers, a digital mortgage marketplace and brokerage, and property data consultancy services for banks, valuers, and property developers. The company’s PropTech business model leverages proprietary data and technology to drive greater transparency and efficiency in the market and deliver a trusted platform for agents, consumers, developers, and banks.

Bridgetown 2 Holdings Ltd is a blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses, with a focus on technology, financial services, or media sectors in Southeast Asia. The company is formed by Pacific Century Group and Thiel Capital, led by Chief Executive Officer and Chief Financial Officer Daniel Wong and Chairman Matt Danzeisen.

Over the last 18 months, PropertyGuru said it has announced the acquisition of REA Group’s Malaysia and Thailand assets. The transaction is expected to close by the end of July 2021 – mid-August 2021. It has also acquired MyProperty Data, Malaysia’s largest online property data company. The company also introduced FastKey Storyteller – an immersive content experience that brings new projects to the buyer’s doorstep for viewing and to express interest, without having to wait for the construction of the sales gallery.

PropertyGuru has also launched PropertyGuru Finance – a digital mortgage marketplace and brokerage that offers smart, frictionless home financing financial services, among others.

The company also expects that the growth of its core offerings will allow it to expand into adjacent opportunities, such as Developer Operating Systems and Home Services.

“We believe PropertyGuru is just scratching the surface of what it can deliver as Southeast Asia’s property market continues to accelerate, and we are excited to work with Hari and his talented team to capture the incredible opportunities that lie ahead,” Bridgetown 2 chairman Matt Danzeisen said.

“The market for property is probably the oldest market in the world, and only now is it beginning to change rapidly. As PropertyGuru spearheads that change in Southeast Asia, Bridgetown 2 will provide capital and expertise to accelerate it even further,” Thiel Capital President Peter Thiel said.

“Southeast Asia is a unique market in that it has very high economic growth but lacks quality services in many sectors. Fast-growing middle-class, increased urbanization and technological disruption create a unique combination. We recognize the transformational impact of these long-term trends and are focused on operating our own core business and investing in local champions that are successfully leveraging technology to reshape the region’s economy and how people carry out their everyday lives,” Pacific Century Group Founder and Chairman Richard Li said.

Bridgetown 2 Holdings Ltd is a blank check company formed by Pacific Century Group and Thiel Capital, led by Chief Executive Officer and Chief Financial Officer, Daniel Wong, and Chairman Matt Danzeisen.

Merrill Lynch (Singapore) Pte. Ltd. is serving as exclusive financial advisor to PropertyGuru on the deal.

Merrill Lynch, Citigroup Global Markets Inc., KKR Capital Markets, and TPG Capital are serving as placement agents to Bridgetown 2.