Sonder, a US-based hospitality services provider backed by homebuilder Lennar, agreed on Friday to a reverse takeover with special purpose acquisition company Gores Metropoulos II at a pro forma enterprise value of $2.2bn.
The merged business will take the position on the Nasdaq Capital Market acquired by Gores Metropoulos II, sponsored by affiliates of investment firm Gores Group and businessman Dean Metropoulos, when it floated in a $400m initial public offering in January this year.
A Gores Group affiliate is leading a $200m private investment in public equity (PIPE) deal supporting the transaction that includes investment and financial services group Fidelity, Atreides Management, Principal Global Investors, Senator Investment Group, affiliates of Moore Capital Management and funds and accounts managed by BlackRock.
Formerly known as Flatbook, Sonder runs an online platform that allows users to book accommodation in high-quality rooms and apartments run by the company in 35 cities across eight countries, with services available through guests’ mobile devices.
Fidelity and WestCap co-led Sonder’s $170m series E round in June 2020, investing alongside Lennar, Inovia Capital, Spark Capital, Greenoaks Capital, Valor Equity, Greylock Partners, Atreides Capital and Tao Capital at a $1.3bn valuation.
The company had previously raised $360m from since it was founded in Canada in 2012, from Fidelity, Valor Equity, Westcap, Tao Capital Partners, Atreides Capital, Spark Capital, Inovia Capital, Greenoaks Capital, ARod Corp, Thayer Ventures, Real Ventures and BDC Capital.
Francis Davidson, co-founder and chief executive of Sonder, said: “With modernised service, we are delivering uncompromising quality with inspiring design, and offering accommodations at a price point that democratises access to an extraordinary hospitality experience.
“We are incredibly excited about this transaction with Gores, which we view as a natural extension of our longstanding relationship that will enable us to accelerate our growth on the path to build the iconic 21st century brand in hospitality.”
