Wilson Sonsini Goodrich & Rosati, P.C. Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 Sonder illustrates the downfall of 3 different product offerings in the lodging and travel space today. Something went wrong while submitting the form. So now it's about 50% of our business. WebSonder Holdings, Inc., a leading next-generation hospitality company, and Gores Metropoulos II, Inc. announce closing of business combination. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. Sonder's CEO called the listing a historic moment for the company. All Rights Reserved. Sonder began trading on the Nasdaq this morning, after completing its previously announced business combination with Gores Metropoulos II, a California-based special purpose acquisition company (SPAC). Leadership Team | Sonder Holdings Inc. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity However, the company reported up a loss of $54.6 million for its second quarter, on an adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] basis. SPAC Thats due to the leadership and staff who built a flexible model thats been proven at scale, Roberts told BetaKit. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Sonder. 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, that values the newly combined company at $2.2 billion, Sonder announced Friday.. And their expected growth rate is also head and shoulders above the median of each of those industries. Proptech CEO pay, the Goldman Sachs is advising Sonder, and Morgan Stanley is the leading adviser to Gores Metropoulos II. With this incremental investment, we will have ~$530M of capital at closing, in addition to up to $450M proceeds from the SPAC trust, which provides for a fully funded business plan upon closing, the SPAC said in a letter to Sonder team. A trend that I've been watching the development of is the "digital nomad," where remote workers move between different cities instead of settling down in one location. 2021. Highlights from the presentation are below. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. Before, we had to make the pitch that the lobby should be on your phone and you should be able to do everything there. There's nothing like it. We think that the combination of this incremental capital and our proactive response to changing market dynamics will put us in the best position to drive long-term value creation for our shareholders and employees., Alec Gores, the buyout sponsor of the deal, told New York Times that the market has shifted and we totally get that[a]s long as you have a great company, the market is going to go in 100 different ways, and we just have to be smart enough to recognize where the market is.. 1)) and the proposed Business Combination contemplated thereby; (b) the inability to complete the proposed Business Combination due to the failure to obtain approval of the stockholders of Gores Metropoulos II or other conditions to closing in the Merger Agreement (as amended by Amendment No. The proposed business combination remains on track to close in the second half of 2021, subject to approval by Gores Metropoulos IIs stockholders and other customary closing conditions. Quarterly Results | Sonder Holdings Inc. Chris Mammone, The Blueshirt Group Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. Two is that the vast majority of our travelers are domestic, not international. Can you talk me through your decision to go public? We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. See here for a complete list of exchanges and delays. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the Existing PIPE. Three is demographics. It's a really robust process to ensure that we're covered on the downside and that we only take on properties that are going to be really, really profitable and valued by our guests. We've always built a really financially diligent company, but we took this to the next level. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. The high redemption rate for the Sonder deal stands out for SPACs led by buyout Francis Davidson, Sonders co-founder and CEO, called the listing a historic moment for the company, adding that it is a testament to how weve revolutionized the hospitality industry by reimagining and delivering what the modern traveler demands.. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement (as amended by that certain Amendment No. Thats relatively flat year over year and up $36 million from Q4 2020. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. Except as required by law, neither Gores Metropoulos II nor Sonder undertakes any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this release. 2019, US$ 178.767 million (LOSS). As part of the deal, Sonder will secure approximately $310 million USD in private investment in public equity (PIPE) capital and $165 million in delayed draw notes to support its new and existing growth initiatives. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the buyer risks losing the entire premium invested in the option if the buyer does not exercise the option. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. "I think you can view us as a next-generation Marriott," Davidson said, adding that Sonder partners with companies including Expedia Group Inc (EXPE.O), Airbnb Inc (ABNB.O) and Booking.com to reach out to customers. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. Launched by Davidson and cofounder Lucas Pellan in 2012 as a way to rent vacant college apartments, Sonder's portfolio has grown to a massive size. San Franciscos short-term rental startup Sonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 SPACs are shell companies that raise funds to take a private company public through a merger at a later date. In response to evolving market dynamics, we are also amending the terms of our merger agreement, reflecting our commitment to driving long-term value creation, transparency and stockholder alignment in this high-performing and innovative business., We continue to see a rebound in leisure travel, and we are aggressively pursuing our expansion plans and capturing significant consumer demand. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"])for(var e in a.data["datawrapper-height"]){var t=document.getElementById("datawrapper-chart-"+e)||document.querySelector("iframe[src*='"+e+"']");t&&(t.style.height=a.data["datawrapper-height"][e]+"px")}}))}(); We appear to be moving pastthe pandemic disruption.
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