Furnished apartment rental provider Blueground has agreed to acquire Brazilian real estate startup Tabas, the companies announced Thursday. The deal, Blueground’s first acquisition, is expected to close in the first quarter of 2023, according to the company.
The finanacial terms of the contract were not disclosed. The deal is subject to standard closing practices and awaits regulatory approvals, according to the company.
The news follows an investment by Blueground in Tabas last year. The startup earlier this year secured $14 million in Series A funding, led by Blueground.
Once the acquisition is complete, Tabas will act as a gateway for Blueground’s entry into Latin America, adding 1,000 apartments to Blueground’s current portfolio of 9,500 apartments in 29 cities, according to the company.
Blueground and Tabas plan to launch in Mexico City in early 2023, the companies said. The launch will total 30 cities for the brand, supporting Blueground’s goal to grow its network to 40,000 apartments in 50 cities by 2025.
According to Blueground, the acquisition is expected to generate approximately $650 million in 2023.