States Title, a real estate startup that is among those keen to digitize the transaction process, announced Tuesday that it will change its name to Doma and go public through a merger with a blank check company.
The newly renamed company announced the nickname in a blog post on their website. CEO Max Simkoff’s post stated that “we wanted our name to better reflect the feeling of“ home ”.” The company chose “Doma” in part because the brevity of the word “felt powerful and memorable. ”
“We came across a word that embodies something at the heart of our mission: Doma means“ house ”,“ apartment ”or“ roof ”(implicit protection) in Latin, the oldest root of many languages,” Simkoff also explained. “It is the root of ‘domicile’ and ‘inland’, two English words that are closely related to the concept of a house.”
In a separate statement, the company also revealed plans to merge with Capitol Investment Corp. V, a publicly traded company known as the Special Purpose Acquisition Company (SPAC) or blank check company. Merging with a blank check company has become an increasingly popular way to go public recently as it allows companies to avoid jumping through some of the initial public offerings associated with a traditional IPO.
Such mergers have taken place across industries, but when it comes to real estate, the best-known example is iBuyer Opendoor, which went public last year.
The merger valued Doma at $ 3 billion and is expected to “generate up to $ 645 million in cash revenue,” the statement said. That includes $ 345 million in cash that Capitol Investment Corp. V has $ 300 million from stock sales.
The newly merged company is traded on the New York Stock Exchange under the ticker DOMA. It was not immediately clear when the company’s shares would be publicly available.
The company, now known as Doma, was first founded in 2016 and launched in 2018 what Simkoff referred to in his blog post as “algorithmic, instantly underwritten refinancing title insurance”. The company has since rolled out additional products like disclosure technology to expedite closings and raised hundreds of millions in debt and equity funding.
Doma also belongs to a rising class of startups like Qualia and Notarize, all of which aim to streamline some of the more persistent analog parts of the real estate closing process.
In his statement on Tuesday, Doma said it has allowed more than 800,000 closings to date.
Simkoff pointed out in the statement that his company can continue to grow through the merger and the IPO.
“This partnership with Capitol,” said Simkoff, “shows their confidence in our strong growth position as we continue our sprint to shape the future of real estate transactions.”
Email Jim Dalrymple II