Denver Travel Company Inspirato Goes Public in $ 1.1 Billion PSPC Deal
Inspirato is preparing to debut on Wall Street.
The Denver-based travel company this week announced plans to merge with publicly traded special-purpose acquisition company Thayer Ventures Acquisition Corp. and trade on the Nasdaq with the ticker symbol “ISPO”.
The transaction values Inspirato at an estimated enterprise value of $ 1.1 billion, the companies said.
“We are delighted to enter a new chapter of growth and innovation with Thayer,” said Brent Handler, CEO of Inspirato. “With this announcement, we are well positioned to expand our vision of revolutionizing luxury travel through our simple and intuitive consumer subscriptions. “
Inspirato, which was founded in 2011 by Handler and his brother Brad, rents approximately 400 properties worldwide for its more than 18,000 members to choose from, including Vail, Aspen and Telluride, and has partnerships with hotels.
A traditional membership for a family costs $ 24,000 for the first year. Members then pay per night for their stays, according to the company’s website. In 2019, the company launched Inspirato Pass, a subscription service where members can pay $ 2,500 per month to book unlimited vacations at nearly 150,000 properties around the world.
When the pandemic interrupted the holidays in March 2020, the luxury travel company laid off 130 employees, or 20% of its 600 employees. The company now has 630 employees, according to a spokesperson.
Despite the pandemic, Inspirato saw a 30% increase in year-over-year booking activity in 2020, according to previous media reports, and it expects to exceed $ 200 million in recurring revenue annuals by the fourth quarter of 2022.
Since Inspirato’s inception, it has generated more than $ 1.2 billion in revenue, with subscribers booking more than 850,000 total nights to date, the companies said.
The transaction with Thayer Ventures Acquisition is expected to close in the fourth quarter and is expected to earn Ispirato $ 260 million in cash that it can use to fuel its growth, the companies said.
Special purpose acquisition companies like Thayer Ventures Acquisition are essentially empty shells formed by investors for the sole purpose of merging with a private company, making that company public in the process.
The company is focused on the travel and transportation technology sectors, which match the track record and investment experience of Thayer’s management team, according to a press release.
Brent Handler will continue to run the travel agency at its downtown headquarters. The company occupies three floors of the historic Sugar Building at 1530 16th St. Mall and three floors of the adjacent Sugar Square Building for a total of approximately 50,000 square feet, according to a spokesperson.