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San Francisco’s Sonder is reported to have reached a merger agreement with Gores Metropoulos II Inc.
The company, which signs master leases with landlords to turn units into short-term rentals, is close to announcing its speculated deal, Bloomberg reported on Friday.
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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.
Can SPACs Revive Travel Venture Capital? Read Skift Research’s analysis of special purpose acquisition corporations.
If it goes through, Sonder could be valued at $2.2 billion. According to Bloomberg, the transaction would include a $200 million private placement led by an affiliate of private equity firm Gores Group, with participation from 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.
Last year, Sonder reached a valuation of $1.3 billion after a funding round.
Sonder said it recorded occupancy rates of no less than 40 percent during the height of the pandemic, in part due to its contactless procedures, such as digital check-in, keyless entry, professional cleaning, crowd-free lobbies, and kitchens in most if its units. Overall, it claimed a cross-market occupancy rate consistently around 75 percent.
The deal would mark the latest in a series of SPAC deals and rumors, following Grab’s move to go public with Altimeter, resulting in a $40 billion valuation.
Earlier this month, luxury vacations club Inspirato was reportedly set to announce a similar deal with Thayer Ventures, while Hong Kong’s luxury Rosewood Hotel Group may also be planning to file for a special purpose acquisition company listing.
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Photo Credit: Sonder reached a valuation of $1.3 billion after a funding round last year. Sonder
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