Sonder Holdings Inc., a hospitality company, and Gores Metropoulos II Inc., a special purpose acquisition company sponsored by an affiliate of The Gores Group LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Dean Metropoulos of Metropoulos & Co., have entered into a definitive agreement to combine.
Sonder works directly with real estate developers and property owners to manage and operate each individual Sonder space. Led by a management team with deep technology, operational and hospitality experience, the company’s tech-enabled, mobile-first service provides booking, digital concierge and a unified, on-demand platform for maintenance and service.
“Through innovative technology and thoughtfully designed accommodations, Sonder is revolutionizing the hospitality industry,” said Francis Davidson, Sonder’s co-founder and CEO. “With modernized service, we are delivering uncompromising quality with inspiring design, and offering accommodations at a price point that democratizes 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.”
“Sonder’s differentiated, tech-driven platform and unique value proposition have put the company at the forefront of the hospitality industry,” said Gores. “With its enormous market opportunity and experienced leadership team, Sonder has already proven the resiliency and scalability of its business and has tremendous potential to continue expanding globally amid tailwinds created by the impending travel recovery. This transaction strikes at the core of our continued focus on identifying and partnering with companies that are true disruptors in their industries, and we’re confident that our partnership will enable Sonder to solidify its leading position as the hospitality brand of tomorrow.”
“Throughout the course of my career I’ve been focused on finding and developing unique consumer brands and experiences,” said Metropoulos. “Sonder’s fresh approach to hospitality meets the needs of an evolving traveler and puts the company in a great position to take advantage of these rapidly transforming trends.”
Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement. The $200 million PIPE investment is led by an affiliate of The Gores Group, with participation from 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.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Sonder. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to GM II. Moelis & Company LLC acted as additional financial advisor to GM II. Weil, Gotshal & Manges LLP is serving as legal advisor to GM II. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. Latham & Watkins LLP is serving as legal advisor to the co-placement agents.