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San Francisco’s Sonder has reached a merger agreement with Gores Metropoulos II Inc.
The company, which signs master leases with landlords to turn units into short-term rentals, announced the deal after speculation earlier this month.
Gores Metropoulos II Inc. was set up in December last year, and is a newly organized blank check company or special purpose acquisition corporations (SPACs) formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Sonder to go public on NASDAQ through SPAC deal
Montréal-founded travel tech startup Sonder is set to go public on the NASDAQ through a merger deal with Gores Metropoulos II Inc.
Sonder co-founder and CEO Francis Davidson officially announced the plans on Friday and SEC filings confirm that special purpose acquisition company Gores has entered into an agreement with Sonder.
“[This deal] will enable us to accelerate our growth on the path to build the iconic 21st century brand in hospitality.”
According to the companies, Sonder expects to raise $650 million USD of cash proceeds through the deal, which is expected to bring Sonder’s enterprise value to $2.2 billion. The value reportedly represents a 3.6 times increase in Sonder’s projected revenue for 2022. Existing Sonder stockholders are set to retain 74 percent ownership in the company.
The deal will give the combined entity an enterprise value of about $2.2 billion. Bloomberg | Apr 30, 2021
(Bloomberg) Lodging startup Sonder, which decks out apartments and hotel rooms as hip short-term rentals, has agreed to merge with special purpose acquisition company Gores Metropoulos II Inc.
The deal will give the combined entity an enterprise value of about $2.2 billion, according to a statement Friday that confirmed an earlier Bloomberg News report. It includes a $200 million private placement led by an affiliate of Gores Group, the investment firm founded by the SPAC’s chief executive officer, Alec Gores.
The fundraising will also be joined by Fidelity Management & Research Co., funds and accounts managed by BlackRock Inc., Atreides Management, entities affiliated with Moore Capital Management, Principal Global Investors and Senator Investment Group.
Through innovative technology and thoughtfully designed accommodations, Sonder is revolutionizing the hospitality industry
Combined company to have an estimated pro forma enterprise value of approximately $2.2 billion
Business combination includes $650 million of cash proceeds from Gores Metropoulos II before expenses, including fully committed PIPE of $200 million from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group
Proceeds from the business combination will be used to continue global growth and expansion and increase investments in technology to drive an elevated guest experience
Combined company to have an estimated pro forma enterprise value of approximately $2.2 billion
Business combination includes $650 million of cash proceeds from Gores Metropoulos II before expenses, including fully committed PIPE of $200 million from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group
Proceeds from the business combination will be used to continue global growth and expansion and increase investments in technology to drive an elevated guest experience
Sonder Holdings Inc. (“Sonder” or the “Company”), a leading next-generation hospitality company that is redefining the guest experience, and Gores Metropoulos II, Inc. (Nasdaq: GMIIU, GMII and GMIIW), a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global i