Sonder agrees to go public via $2.2 billion SPAC


Ella Jones, Deputy Editor In Chief

Date: 05.05.2021

Lodging startup Sonder, which offers refurbished properties for short-term rentals, has agreed to go public through merging with a blank-check firm backed by billionaire investors Alec Gores and Dean Metropoulos that values the combined company at around $2.2 billion.

The deal with Gores Metropoulos II will give the hospitality startup $650 million of cash proceeds, including a private placement of $200 million from investors such as Fidelity Management & Research Company LLC and BlackRock Inc.

San Francisco-based Sonder works with real estate developers, who build the properties that Sonder later operates under its brand name. The business was heavily impacted when the global pandemic brought the travel industry to a halt last year, but has rebounded as it targets millennial leisure travelers, said Chief Executive and co-founder Francis Davidson.

Sonder reported $116 million in revenue last year, a 19% drop year-over-year. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties.

by Ella Jones | Linkedin

#News #IPO #ICO #Sonder

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