Sonder Holdings Inc., a high-tech hospitality company, said Friday it is going public via a merger with special purpose acquisition corporation Gores Metropoulos II Inc.
GMII,
+0.05%
GMIIU,
+0.69%
GMIIW,
-1.38%
in a deal with a pro forma enterprise value of $2.2 billion. The company will have $650 million in cash, while additional 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, have committed to a PIPE investment of $200 million. Proceeds of the deal will be used to expand globally and increase investments in technology to upgrade the customer experience. Sonder was launched in 2014 by Francis Davidson, now CEO, and Martin Picard, global head of real estate. The company operates more than 300 properties across 35 markets in 8 countries. It works with real estate developers and property owners to lease, manage and operate spaces using digital concierge and other tech-enabled services that reduce operating costs compared with regulator hotels. Sonder is expected to generate $4 billion of revenue in 2025.