SmartRent.com Inc, a smart home automation company, agreed to merge with a blank-check firm backed by investment capital firm Fifth Wall to go public, valuing the new company's equity at about $2.2 billion.

The FWAA, an acquisition company for special purposes, in February received $345 million through the initial public bid.

J.P. Morgan Securities LLC and Morgan Stanley are said to serve as co-financial advisors to SmartRent while Deutsche Bank Securities and Goldman Sachs are advisors to Fifth Wall Acquisition Corp. I on capital markets.

SPACs are publicly-listed shell companies, who collect money to later merge an private company as a public entity, enabling private companies to bypass a conventional IPO from the market.

An earlier SPAC deal was Walmart's Flipkart which, according to people familiar with the topic, agreed to go with the blank check firm, anticipating a faster listing process via a merger.

Over time, the online merchant had been considering an initial public offering from the US, as it also had been looking at other alternatives. Several SPACs were sought by his advisors. At least, in a blank check transaction, the company planned to receive a valuation of $35 billion.

On the contrary, though looking for a US listing through SPAC offers, the company decided to join with other Indian companies such as Grofers, which is also an online retailer.

The merged entity is estimated to receive $513 million in gross proceeds from the transaction with Fifth Wall Acquisition Corp I (FWAA.O), with around $155 million coming from Koch Real Estate Investments, Baron Capital Group, Lennar Corp (LEN.N), and Invitation Homes.

SmartRent develops technological products that simplify everyday operational processes, including parking control, locks and thermostat service for land owners and homes. Include Lennar, Invitation Homes and Essex Property Trust Inc. Scottsdale, Arizona based customers (ESS.N).