Nextdoor Inc., the neighborhood social network, plans to go public by merging with a special-purpose acquisition company called Khosla Ventures Acquisition Co. II , the companies said Tuesday.
The deal is expected to give Nextdoor an equity value of about $4.3 billion and generate about $686 million in gross proceeds, $270 million of which would come from a placement from funds and accounts advised by T. Rowe Price Associates Inc., Baron Capital Group, Dragoneer and other investment firms.
Nextdoor, which operates an app meant to allow people to get information about their neighborhoods, said it is active in 275,000 neighborhoods around the world. In the U.S., close to one in three households use the app, the company said.
The proposed merger and public listing “will provide access to new capital, which will be used to accelerate Nextdoor’s growth plans including hiring, expanding monetization, and continuing to develop products,” the companies said.
Chief Executive Sarah Friar and Finance Chief Mike Doyle will continue to lead Nextdoor after the merger with Khosla Ventures Acquisition Co. II.