Furnished apartment rental provider Blueground has agreed to acquire Brazilian real estate startup Tabas. The deal, Blueground’s first acquisition, is expected to close in the first quarter of 2023, the company said.
The financial terms of the agreement were not disclosed. The transaction is subject to standard closing practices and is pending regulatory approvals, the company said.
The news follows Blueground’s investment in Tabas last year. Earlier this year, the startup raised $14 million in Series A funding led by Blueground.
Once the acquisition closes, Tabas will serve as Blueground’s gateway to Latin America, adding 1,000 apartments to Blueground’s current portfolio of 9,500 apartments in 29 cities, the company said.
Blueground and Tabas plan to begin operations in Mexico City in early 2023, the companies said. The launch will cover a total of 30 cities for the brand, supporting Blueground’s goal of growing its network to 40,000 apartments in 50 cities by 2025.
The acquisition is expected to fetch about $650 million in 2023, according to Blueground.