Sonder — the lodging startup known for turning properties into short-term rental buildings — is going public via a special acquisition company (SPAC) Gores Metropoulos II Inc. that values the newly combined company at $2.2 billion, Sonder announced Friday.
The San-Francisco-based company was in talks with Gores about going public in early April, after the Gores SPAC raised $450 million in an initial public offering in January, Commercial Observer reported. The proposed combination is expected to close in 2021, according to a press release.
“The opportunity for us to put a meaningful quantity of capital on the balance sheet is incredibly valuable while the travel industry recovers,” Francis Davidson, CEO and co-founder of Sonder, told Commercial Observer on why Sonder chose a SPAC, rather than a traditional initial public offering.
The deal includes a $200 million private placement, led by an affiliate of The Gores Group, which sponsored the SPAC along with…