Hospitality company Sonder is going public via a merger with a special purpose acquisition company (SPAC), valuing the company at $2.2 billion.
The combination with Gores Metropoulos II includes $650 million of cash proceeds.
Sonder’s business model involves working with real estate developers and property owners to lease, manage and operate spaces on a nightly, weekly or monthly basis.
Proceeds from the deal will be used to continue the company’s global growth and expansion as well as increased investments in new technology.
The company launched in 2014 and was co-founded by Francis Davidson, CEO, and Martin Picard, global head of real estate. It currently operates more than 300 properties across 35 markets in eight countries.
“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,” Davidson said.
Sonder expects to achieve approximately $4 billion of revenue in 2025, driven by significant real estate supply growth, global travel market recovery and revenue enhancement initiatives.