Nextdoor Inc. is set to go public as the neighborhood network company announced Tuesday a merger agreement with special purpose acquisition company Khosla Ventures Acquisition Co. II in a deal that values the combined company at about $4.3 billion. After the merger closes, which is expected to occur in the fourth quarter of 2021, Nextdoor will be listed under the ticker symbol “KIND.” The deal is expected to result in gross proceeds of about $686 million, including $416 million in cash. Khosla Ventures’ stock rose 2.1% in premarket trading. “Nextdoor has been at the forefront of cultivating ‘hyperlocal’ communities and neighborhoods since its inception, allowing neighbors to create meaningful connections – both online and offline,” said Nextdoor Chief Executive Sarah Friar. “Our business strengthens as we scale, benefiting from strong network effects, and we believe the proposed transaction with KVSB accelerates the growth potential of our platform.” Khosla Ventures’ stock, which started trading on March 24, has slipped 2.6% over the past three months through Friday, while the Renaissance IPO ETF has tacked on 0.3% and the S&P 500 has gained 6.8%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Nextdoor Inc. is set to go public as the neighborhood network company announced Tuesday a merger agreement with special purpose acquisition company Khosla Ventures Acquisition Co. II in a deal that values the combined company at about $4.3 billion. After the merger closes, which is expected to occur in the fourth quarter of 2021, Nextdoor will be listed under the ticker symbol “KIND.” The deal is expected to result in gross proceeds of about $686 million, including $416 million in cash. Khosla Ventures’ stock rose 2.1% in premarket trading. “Nextdoor has been at the forefront of cultivating ‘hyperlocal’ communities and neighborhoods since its inception, allowing neighbors to create meaningful connections – both online and offline,” said Nextdoor Chief Executive Sarah Friar. “Our business strengthens as we scale, benefiting from strong network effects, and we believe the proposed transaction with KVSB accelerates the growth potential of our platform.” Khosla Ventures’ stock, which started trading on March 24, has slipped 2.6% over the past three months through Friday, while the Renaissance IPO ETF has tacked on 0.3% and the S&P 500 has gained 6.8%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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