By Maureen Farrell 

Startup mortgage lender Better plans to go public by merging with a special-purpose acquisition company, according to people familiar with the matter.

Better Holdco Inc. plans to merge with Aurora Acquisition Corp., a SPAC sponsored by investment firm Novator Capital, at valuation of roughly $7 billion pre-money, the people said. The transaction could be completed this week.

SoftBank Group Corp., which recently invested $500 million in Better, could put in another $1.3 billion through a PIPE, or private investment in public equity, a common feature of SPAC mergers. (Better might place $400 million of that with other investors.) The remaining $200 million of the $1.5 billion PIPE is to come from Aurora, whose sponsor is the investment vehicle of Icelandic billionaire Thor Bjorgolfsson.

Write to Maureen Farrell at maureen.farrell@wsj.com

(END) Dow Jones Newswires

May 10, 2021 17:15 ET (21:15 GMT)