Latch, Inc., the creator of the full-building SaaS platform, LatchOS, has announced it is acquiring Honest Day's Work (HDW).
New York-based Latch is a trailblazer in the PropTech industry. Its platform is a comprehensive solution that integrates software, devices, and services to transform spaces into better places for people to live, work, and visit. It enables digital key access, smart home automation, high-speed internet connectivity, and other cutting-edge services designed to improve the experience of managing, accessing, and utilizing spaces, making it a one-stop solution for building management.
You may have heard of Latch. But, you probably haven’t heard of HDW and are wondering, “Why is this news? What is HDW, anyway?”
HDW is a technology-driven company focused on helping residential service providers – housekeepers, dog walkers, drivers, and others – operate more efficiently and profitably. By integrating technology into their operations, HDW empowers these professionals to deliver top-notch service to their clients and attain financial independence.
The acquisition deal includes the transfer of approximately 29 million shares of Latch's common stock and $22.0 million aggregate principal amount of unsecured promissory notes in exchange for 100% of the capital stock of HDW. The HDW team, consisting of 30 members, is expected to join Latch following closing of the transaction.
Here’s the rub: HDW is the latest entrepreneurial venture by Jamie Siminoff, founder of Ring, which make this story much more interesting.
Siminoff has a rich history of entrepreneurial success, but is best known as the creator of Ring, the now-whole-home security company bought by Amazon in 2018. Ring's initial product, its video doorbell technology, revolutionized home security and enables homeowners to monitor their properties from anywhere. Ring continues to thrive under Amazon and has continued to expand its product line.
After selling Ring to Amazon for a whopping $1.2 billion, Siminoff invested in residential and multi-family real estate and began building Honest Day's Work, which has been in stealth mode – the reason most people haven’t heard about it.
Why is Latch Buying HDW?
For sure, there are multiple strategies at play here. For one, there are certainly synergies between Latch’s desire to enhancing the quality of living, working, and visiting in various space, and creating a bigger platform for HDW to optimize its service will support that vision.
The acquisition will merge the teams, resources, and expertise of both companies to improve the quality of spaces and boost HDW’s reach and capabilities to a pre-qualified audience.
But, there’s perhaps a bigger opportunity at play, which is bringing Siminoff on as Latch’s new CEO later this year.
Siminoff is a seasoned veteran in IoT, SaaS, security, and real estate, with clearly proven success in building companies that excel in solving real-world problems that millions of people face each day. Prior to Ring, he was involved with several other ventures with a similar problem-solving approach, including:
- PhoneTag – Siminoff's first major venture was PhoneTag, previously known as SimulScribe, a voicemail-to-text service. He founded the company in 2003 and created a service that used speech recognition technology to convert voicemails into text messages or emails, which users could then read at their convenience. PhoneTag has since been acquired by YouMail.
- Unsubscribe.com – After selling PhoneTag, Siminoff went on to found Unsubscribe.com in 2010. This service aimed to help users manage their email subscriptions and reduce unwanted email (a problem with which nearly everyone can relate).
- Edison Junior – Siminoff was also the founder of Edison Junior, an invention lab based in Los Angeles. This venture was designed to create innovative, consumer-focused products. It was under the umbrella of Edison Junior that the initial concept for Ring was developed.
Siminoff's entrepreneurial efforts have spanned multiple industries, but they share a common focus on using technology to solve everyday problems and improve efficiency and convenience. His experience and success in launching and growing these ventures will undoubtedly bring significant value to Latch.
But, it goes deeper than that. There are clear synergies between his success with Ring and what Latch is doing – both play in the smart home space, though they have different focuses and unique value propositions.
Ring was initially centered around security and convenience for individual homeowners and, over time, expanded its portfolio to include a suite of home security products, such as security cameras, alarm systems, and smart lighting.
Latch is oriented towards the broader real estate sector, targeting not just individual homeowners, but also property developers, building managers, and tenants. Its products are smart access systems that include smart locks, cameras, intercoms, and other devices that are interconnected through a single, streamlined application – not unlike the Ring platform today. This technology is helping transform the real estate industry by providing occupants with a greater level of convenience, control, and security, and property managers with more efficient building operations.
The company's solutions are not just about access but about creating a more integrated and responsive living environment. For example, with LatchOS, residents can control their apartment's lighting, temperature, and other smart home devices, while property managers can more efficiently manage services like package delivery and guest access.
Latch is also committed to bridging the digital divide and ensuring that all residents, regardless of their technical proficiency, can benefit from smart access technology. This includes offering options for access via smartphone, keycard, or door code, as well as providing dedicated support and resources for users.
So, while the two have different targets and objectives, they are built on very similar fundamental philosophies. Bringing Siminoff on board bodes well for Latch, given his experience in the real estate space and his success with IoT-enabled building solutions.
“Smart, secure access control is not only fundamental to real estate operators like myself, but also to residents and service providers,” he said about this new opportunity. “I look forward to combining Honest Day’s Work with Latch to build a residential ecosystem that empowers building owners, operators, service providers, and residents alike.”
Like Siminoff, Latch has shown consistent dedication to innovation, continually developing and refining its solutions to meet evolving needs and leverage technological advancements.
The acquisition of Honest Day’s Work, expected to close at the start of the Q3 2023, isn't just a business transaction. Rather, it’s a merger of visions, a shared belief in the power of technology to improve lives and make spaces more enjoyable and efficient. With the combined expertise of both companies and Siminoff’s visionary leadership, Latch is certainly positioning itself well to revolutionize the PropTech industry.
Edited by
Erik Linask
