Apartment-style accommodation provider Sonder intends to go
public by merging with special purpose acquisition company Gores Metropoulos II
with a valuation of $2.2 billion, with $650 million of cash proceeds from Gores
Metropoulus II, the companies announced.
The proposed merger has been unanimously approved by both
Sonder's board of directors and Gores Metropoulos II's board, and is expected
to close in the second half of 2021, according to the companies.
Launched in 2014, Sonder
raised $170 million in a Series E round in June 2020 in the midst of the
Covid-19 pandemic, bringing its valuation to $1.3 billion. In total, the
company previously had raised more than $560 million, according to Bloomberg. Proceeds
from the merger will be used to continue global growth and expansion, and
increase investments in technology, according to the companies.
Sonder currently operates more than 300 properties across 35
markets in eight countries. The company is expected to retain its management
team, including co-founder Francis Davidson as CEO and Sanjay Banker as
president and CFO, according to the companies.
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