Latch Acquires Property Management Business, Pursues Vertical Integration
As the latest of a series of turnaround moves, Latch has purchased a property management firm to vertically integrate property management operations with its smart building technology offerings.
In this report, we examine the deal and how it may fit into the troubled company's plans to reinvent itself under the leadership of Ring founder Jamie Siminoff.
Executive *******
***** ** ** ****** ******* *** an *** ********** ******* ** ****** out **** ******** **********, *** **** might **** ***** *** ***** — which *** **** ********** *********** ****** ********,********* ********* ******, ********* ***** *****,* *********** *******, *****-******* **** *** ******(***** ** ****'* **** ********).
********, *** ******* ** ******* ***** as****.***, ****** *** *******'* ******** ** Boston-based *** ******** ********** ******** *********** **** ** *** New ******* **** "*** ******* ******* for **" ***** * ******* *** of *** *** *** *********** *********.
***** ** *** **** **** *** disclosed, *** *** ***** *** ****** not *********** *** *****. ** ***** *******, ***** ********* *** ******** *******'* portfolio ** "*****," *********** ***** * ***** *********** ** ** *** *******.
*** *** ********, ***** **** ** called **** ******** ********** ***, *** pair **** **** *** ***** ********* Siminoff ******* ** ******, ******** ** home ******** **** ** ***** ******** and ***-******* ** **** ** *** current ***** **** *** ******** ********** system ********.
*** **** ***** ** ****** ** reasonable, ***** **** ** ** ******** to **** *** *******'* ******** ********. Should *** ********** *******, ******** *** Latch/Door.com **** ** **** ** **** credit *** ********** * *** **** of **********-********** ******** ********** *****.
Details ** *** ***********
** *** ************, ***** ****** *** purchase ** *** ******** ******* * "strategic *********** **** ********** ** *********** to *** ***** ** ******* *** entire ******** ***** **** ******** ********** o ******** ********** *********."
*** ** *** ***** ** *** purchase ** *** ***** ** **** experience ** ******** ********** *** ******* data *** ******** ** ***** ** improve *** ***** ******** *** ********, the ******* *********. ** ******:
*** ****enables ***** ** **** *****-** ********** in property management to further refine and optimize its products and services to enable property owners to maximize *** ********* ****** (***) while delivering the best possible resident experience. [Emphasis Added.]
Siminoff ** ******** ***********
********** ** *** ********, ******** **** that *** *******'* ********* ** ** vertically ********* ********** **** ******** ********** in ***** ** "****** *** **** of ********* * ******** *** ******* products **** **** *********’ ***** ******."
** **** **** **** ****** ** the **** ** ******** ******* **** help ***** "******* *** ******* ********* timeline *** ********** ******** *** ******* to **** **** ******** *** ************ that ******* *** [*** ********* ******]."
** ***** **** ****** *** *** "perfect *******," *******:
****** ** ***perfect ******* *** ** **** * ******* **** ****** ****** **** *** *** *** ********* in a range of population densities. I am excited for what we can invent and build when we are not only developing and selling the products that make buildings more efficient, but also fully *********** **** **** *** ****** ********** ** *** *********. [Emphasis Added.]
"Don't ***, *** ***"
***** **** *** *********** **** **** its ****** "***'* ***, *** ***" campaign (*** ****'****** ******** "***'* ***, *** ***" Smart ****** ********) ** ***** ** ** ********* new ***** ** ***** **** ********* and ***** *** ******* ***** ** curbing ***** ******** ********** ********.
*** ******** ***'* ******* ****** **** actually *****. *** *********** *** ************ image ** *** **** ****** ** test **** ** ** ******* ** customers ***** ** ************** "*****" **** high *****, *.*. ***** ******. *** promotional **** ****, ***** **** ******* a *** ** ****** ***** *****, look **** ****.
**********
** ******** ** *** **** ***** be ** ****** * ******** *******, Latch *** ******** *** **** ** a **** ******** ** *** ******* ideas *** *** ** **** ****.
******* *** ******** ** *** ***** price *** *** ******* ** ****** corrected ********* ********** — ** *** financial ********** — ** *** *.*. Securities *** ******** ********** ***** ** 2022, ***** *** ********** * *********** cash *******.
***** ** *** *** **** ** with *** ********* ********** ************, *** company ******** ******** ** *** **** and **** *********** **~$*** ******* ** **** ****. ***** ********'* ********** ****-******* ******** (see***** **** *** **% **** ********* As **-**** ******* ***** ****), ** ******** *** ******* *** have ** ***** $*** ******* *********.
*** **********, ***** ********* **** *** out, *** *** ******* **** ****** need ** ** ******* ** *** way ** * **********, ** ** could ** **** *** ** ***********.