Acquisition enables Latch to deliver on its
mission of making spaces better places to live, work, and visit
Latch, Inc. (NASDAQ: LTCH) today announced that it has completed
the previously announced acquisition of Honest Day’s Work (“HDW”),
Ring founder Jamie Siminoff’s latest company dedicated to enabling
residential service providers, such as housekeepers, dog walkers,
and drivers, to operate more efficiently, profitably, and
independently through technology.
Latch acquired 100% of the capital stock of HDW in exchange for
approximately 29.0 million shares of Latch’s common stock, subject
to certain time-based and stock performance-based transfer
restrictions, and $22.0 million aggregate principal amount of
unsecured promissory notes. Upon the closing of the acquisition,
Latch acquired all of HDW’s assets, including its intellectual
property and $8.0 million in cash. Additionally, approximately 30
HDW team members joined Latch.
The acquisition integrates the two companies’ teams, resources,
and know-how to advance Latch’s mission of making spaces better
places to live, work, and visit, while further advancing HDW’s
capabilities. Jamie Siminoff is expected to take over as Latch’s
CEO later this year. The combined company plans to remain focused
in the near term on optimizing efficiency and ensuring continued
excellence for customers.
Jason Keyes, Latch Interim CEO, said: “We are pleased to
officially have Jamie and his team on board as we continue to focus
on delivering for our customers and building steady growth and
momentum for the business. I am excited about opportunities to
enhance Latch with HDW’s services to further improve our user
experience and deliver new features that make customers’ and users’
lives easier.”
Siminoff said: “With the completion of the acquisition, I am
excited to get to work on combining Latch and HDW to build a
disciplined, efficient, and truly innovative business. By combining
access control with HDW’s mission, there is huge opportunity to
improve the lives of residents, building managers, and service
providers alike.”
About Latch, Inc.
Latch makes spaces better places to live, work, and visit
through a system of software, devices, and services. For more
information, please visit www.latch.com.
About Honest Day’s Work
Honest Day’s Work is on a mission to enable independence through
technology for residential service providers, such as housekeepers,
dog walkers, electricians, and drivers. The company aims to provide
workers with more control over their businesses and enable them to
deliver high-quality service to their customers. HDW was founded by
Jamie Siminoff, founder of Ring.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements generally are identified by the words "believe,"
"project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"would," "will continue," "will likely result," and similar
expressions. Forward-looking statements are predictions,
projections, and other statements about future events that are
based on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Forward-looking information
includes, but is not limited to, statements regarding: Latch’s and
Honest Day’s Work’s future products, financial performance,
strategies, and operations, and the related benefits to
shareholders, customers, and residents; expected growth of demand
for Latch’s and Honest Day’s Work’s future products and their
adoption by customers; Latch and Honest Day’s Work industry
positions; Latch’s acquisition of Honest Day’s Work, the impact of
such acquisition and related transactions on the combined company,
and the operating results of the combined company; the ability of
Latch to successfully integrate Honest Day’s Work and realize the
benefits of such acquisition, including the expected performance of
the combined company’s management team; and the transition in
Latch’s CEO position. Many factors could cause actual future events
to differ materially from the forward-looking statements in this
document, including: (i) the effect of the completion of the HDW
acquisition (the “Acquisition”) on the ability of Latch to retain
and hire key personnel and maintain relationships with customers,
suppliers and others with which Latch does business, or on Latch’s
operating results and business generally; (ii) the risk that the
Acquisition and the integration of HDW into Latch may involve
unexpected costs or liabilities; (iii) the outcome of legal
proceedings, if any, related to the Acquisition or otherwise, and
the impact of the Acquisition thereon; (iv) Latch’s ability to
regain and maintain compliance with the listing standards of
Nasdaq, and the impact of the Acquisition thereon; (v) Latch’s
ability to timely complete the ongoing restatement of its
consolidated financial statements for 2019, 2020, 2021 and the
first quarter of 2022, and the impact of the Acquisition thereon;
(vi) Latch’s ability to file its delinquent periodic reports with
the Securities and Exchange Commission (the “SEC”) by August 4,
2023, and the impact of the Acquisition thereon; (vii) the expected
performance of Latch’s stock; (viii) Latch’s ability to implement
business plans; (ix) changes and developments in the industry in
which Latch competes; and (x) Latch’s response to any of the
aforementioned factors. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the "Risk Factors"
section of our Annual Report on Form 10-K filed with the SEC on
March 1, 2022, and other documents subsequently filed by Latch from
time to time with the SEC. These filings identify and address other
important risks and uncertainties that could cause actual events
and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Latch assumes no
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required by law, including the securities laws
of the United States and the rules and regulations of the SEC.
Latch does not give any assurance that it will achieve its
expectations.
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Investors: investors@latch.com
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