Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. 2022. Tomorrow, GMII Gores Metropoulos II shareholders vote on their deal with Sonder (hear the podcast and see our report here). SPACs can then merge with private companies, taking them public in the process. The Sonder app gives guests full control over their stay. Sonder forecasts their 2025 GAAP revenue to grow to a whopping $4B at a 103% CAGR (2020-2025). Stanza Living, an India-based co-living company, raised a $102M Series B. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. Founded in 2014, the Israel-based company has been in growth mode. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. EBITDA margin going from (181%) in 2020 to 16% in 2025. Launched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments found in over 35 markets spanning ten countries and three continents. Sanford also took a smaller salary $656,480 instead of $1.5 million. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to GM II. Additional Information and Where to Find It. Investors should be aware of the inherent risks involved in investing in the markets and that past performance is not an indication of future results. The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. Sonder had to lay off or furlough one-third of its workforce last spring, while some of its highest-profile competitors were forced to shutter (Lyric) or pivot their business models after layoffs (Zeus Living). None of Volts proprietary content may be reproduced or referenced, in full or in part, in any other publication without the expressed written consent of Volt. Sonder recently took over the Flatiron Hotel in New York City as part of its model to lease, refurbish and rent short- and medium-stay rooms. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. Download the Sonder app on Apple or Google Play. Sonder reported $116 million in revenue last year, a 19% drop year-over-year. As part of the transaction, Sonder and GMII raised a $200 million fully committed PIPE, led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & Download PDF View All Featured Events September 13, 2022 Heliogen 2022 Investor & Analyst Day Presentation March 29, 2023 Heliogen Fourth Quarter and Full Year 2022 Earnings Call Webcast Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. Media Contacts The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. We delivered record quarterly revenue in both Q2 and Q3 and we remain aggressively optimistic on the future of travel, said Francis Davidson, Co-Founder and Chief Executive Officer of Sonder. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi Oops! Subject to any redemptions by the public stockholders of Gores Metropoulos II and the payment of transaction expenses at the closing, the $200 million in Existing PIPE proceeds and approximately $110 million in proceeds from the New PIPEs will be used together with up to $450 million in cash in Gores Metropoulos IIs trust account and Delayed Draw Notes of $220 million to fund operations and support new and existing growth initiatives. 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. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. Reporting by Sohini Podder in Bengaluru; Editing by Ramakrishnan M. Law firms and corporate law departments find strategic partners in ALSPs, US regulation after SVBs collapse: What regulators can do and where Congress needs to act, Ransomware & crypto: The growing compliance challenge, Insights in Action: Corporate law departments find their outside firms innovation lagging, but there may be little incentive to change, Regulators seize First Republic Bank, sell assets to JPMorgan, American Airlines pilots authorize a strike mandate, Factbox: JPMorgan's deal for collapsed First Republic explained, Exclusive: Subway comes up with debt plan to clinch $10 billion-plus sale. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. 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. Your goal is to grow quite rapidly and become a leading force in hospitality. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Gores Metropoulos II raised $450 million in a January IPO, and raised an additional $200 million from PIPE investors, including BlackRock, Fidelity and Senator Investment Group. 2019, US$ 142.908 million Media Contacts Finsbury Glover Hering One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Forward-looking statements included in this document speak only as of the date of this document. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Official notification to shareholders of matters to be brought to a vote ("Proxy") DEF 14A. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. It also gave a peek at its pipeline of units. And this is kind of the force that the capital markets are, in a sense, designed to go and bet on. Sard Verbinnen & Co Messrs. Gores and Metropoulos together have over 100 years of combined experience as entrepreneurs, operators and investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. Content is subject to change without notice. The industry leader for online information for tax, accounting and finance professionals. A year ago, Redfin CEO Glenn Kelman said he would forgo a salary after the tech brokerage had to furlough 40 percent of agents and staff. There's nothing like it. The father and son were also co-founders of BlueTail, a social media marketing startup acquired by Salesforce in 2012. It projected $4 billion in revenues in 2025, and Volt does not seek to solicit or offer any of its products or services to any persons to whom doing so would otherwise be prohibited under the laws applicable to their place of citizenship, domicile or residence.Some of the content on this site may contain forward-looking statements, including but not limited to statements related to future expectations, based on Volts current outlook and assumptions. GMII dropped 5.5% today and closed at $8.86. Launched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments found in over 35 markets spanning ten countries and three continents. We really wanted to build an iconic 21st-century brand, and this is just one of the transitions that are required for it to make that happen. ir@sonder.com The business combination was approved at a special meeting of Gores Metropoulos II stockholders on January 14, 2022. The vast majority, around 80%, of our guests are less than 50 years old. This was a theory back in 2018, and we tested it out for a few dozen properties, and it was proved that it's worked extremely well. Gores and Metropoulos facilitated an IPO for lidar sensor maker Luminar Technologies last August in a nearly $2.9 billion merger with a different SPAC. See here for a complete list of exchanges and delays. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. We're not acquiring these assets, but we're running a process that's just as thorough. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Sonders common shares are currently trading on the Nasdaq under the symbol SOND, at a price of $8.61 USD. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. 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. OpenSpace, founded in 2017, uses AI and cameras affixed to workers hardhats, to provide 360-degree images of job sites. In 2020, Sonder says they have 4,565 units. Other CEOs followed suit. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Sard Verbinnen & Co We hire and we invest heavily into the communities in which we operate. Two is that the vast majority of our travelers are domestic, not international. Thank you! Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. The high redemption rate for the Sonder deal stands out for SPACs led by buyout Please contact our IR department. And when that happens if you're building a building where every unit is $500,000, spending an extra $10,000 to bring it up to Sonder standard it's easy to show the owner the benefits we bring to the table. Javascript is required for this site to display correctly. We reported company-record quarterly revenue in Q2 and are eager to pursue continued growth, said Francis Davidson, Co-Founder and CEO of Sonder. We provide modern service through the phone, and we bring quality and standards to the industry. It currently operates 8,000 (with contracts for 10,000 more). Obviously, tech and automation are part of why you have better profit margins compared to hotels. I sign off in DocuSign on a summary of all the deals. Additionally, the Company has put in place a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following closing of the proposed business combination. Hypothetical strategies and indices presented are unmanaged, do not reflect any fees, expenses, transaction costs, commissions or taxes, and one cannot invest directly in any of these. Jennifer Kwon Chou It currently operates more than 300 properties in 35 markets. Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement (the PIPE). You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Gores Group 2018, US$ 68 million, Net Income Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. Sonder continues to generate impressive results amid the ongoing recovery of the travel industry and is well positioned for future growth given their unique value proposition. Description. All this allows them to cut down on operating costs by as much as ~50%. Leading next 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. The deal will give Sonder $650 million in cash to scale up. For more investment insights, sign up for our email list below and subscribe to our YouTube channel. GAAP Revenue SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. It's interesting to see how Sonder's narrative has evolved from when they raised their series D in 2019 to when they were targeted for a SPAC in 2021. The amended terms revise the combined companys pro forma enterprise value to $1.925 billion. Finsbury Glover Hering Another interesting observation is on consumer behavior. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. Past investors in Sonder include Atreides Management, LP, Bezos Expeditions, GreenOaks, Fidelity Management & Research, GreyLock Partners, iNovia, Spark Capital, Tao, Valor Equity Partners, Westcap, and the Wilson family. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. The goal has always been to go public as part of the path of achieving our overall goal: the mission of the business. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The startups software lets hosts manage listings, communicate with tenants, process payments and send push notifications. New PIPE Investment, US$ 200 million Except as required by law, Sonder does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this report. Sonder's CEO called the listing a historic moment for the company. As part of the SPAC deal, Sonder will retain its management team: Davidson will stay on as CEO, and Sanjay Banker will continue to serve as president and CFO. Sonder. Although the travel sector still faces strong headwinds due to COVID-19, Davidson said the company remains aggressively optimistic on the future of travel, citing Sonders record Q2 and Q3 2021 performance as evidence of the resiliency of its business. WebReports & Presentations. 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. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. All Rights Reserved. Additional risks and uncertainties are identified and discussed in Sonders reports filed and to be filed with the SEC and available at the SECs website at www.sec.gov. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.While an option overlay is intended to improve performance, there is no guarantee that it will do so. We have an exceptional team in place to drive the next chapters of growth for our organization., We continue to lead and innovate with our tech-enabled offering, inspiring design, consistent quality, and compelling value that are the hallmarks of a great modern hospitality experience, said Sanjay Banker, President and Chief Financial Officer of Sonder. Seller Rollover Equity, US$ 2,177 million. We're a design company. Sonder projected it will have 77,000 units within five years. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. What it does: The five-year-old company uses cell phone data to track pedestrian foot traffic in order to give retail and office landlords feedback on how stores and assets are doing. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. Moelis & Company LLC acted as additional financial advisor to GM II. CoStars profit machine is back in action. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. 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.. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Filing date. In addition to the very compelling narrative and numbers presented in Sonder's investor presentation, Sonder's strategic advantage relative to both incumbents and potential new entrants makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. 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. Josh Scott is a BetaKit reporter focused on breaking news and telling in-depth Canadian tech stories. How? However, over the last couple of years, Sonder has begun to expand its presence in Montral once more. The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. According to Sonders calculations, the company would need to have 34,889 live units with to have a positive adjusted EBITDA of US$ 24,201,000. 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. Sonders common stock to commence trading on the Nasdaq under ticker SOND on January 19, Approximately $310 million PIPE capital from leading investors including affiliates of Gores Metropoulos II, Fidelity Management & Research LLC, funds and accounts managed by subsidiaries of BlackRock, Inc., Atreides Management, LP, and Senator Investment Group, Sonder to draw on $165 million in principal amount of Delayed Draw Notes following the closing of the business combination. served as legal advisor to Sonder. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. 2020, US$ 240.663 million (LOSS) 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.. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. This interview has been edited for length and clarity. Sonder's pre-SPAC merger investor presentation outlined the narrative and future of Sonder with surprising transparency. real estate targeting, warehouse and inventory management, logistics planning, etc.). Cosmo Specialty Fibers Sonder Hospitality - SPAC - Current. Latham & Watkins LLP is serving as legal advisor to the co-placement agents. u2014 CoStar CEO Andy Florance. We appreciate our close partnership with the Gores team and with our business combination completed, Sonder now has a very strong balance sheet to aggressively pursue our ambitious growth strategy, revolutionize hospitality, and deliver long-term value to shareholders., "Were proud to have partnered with Sonder and look forward to supporting their next chapter of growth," said Ted Fike, Senior Managing Director at The Gores Group. Company Profile. 1, will be provided in a Current Report on Form 8-K which will be filed by Gores Metropoulos II with the SEC and will also be available at www.sec.gov. I think it's really important to underscore that we are a technology meets operations company. Last week, the startup raised $55 million from investors, led by Alkeon Capital Management, with participation from Penny Pritzkers PSP Partners and others. 2021. ir@sonder.com, For The Gores Group and affiliates: The now United States-based company has strong Canadian roots. All pictures below are taken from Sonder's investor presentation, the entirety of which can be downloaded from Sonder's investor relations page. You can read more of our analysis on Sonder's strategic position vs. hotels in this post. While the travel industry has faced headwinds with the ongoing pandemic, Sonder has continued to grow at a rapid clip, proving the resiliency of our business model and demonstrating our ability to pivot quickly to address emerging trends and traveler needs. Hypothetical model results have many inherent limitations, some of which, but not all, are described herein. 1); (c) the ability to meet Nasdaqs listing standards following the consummation of the proposed Business Combination; (d) the inability to complete the Existing PIPE or the New PIPEs; (e) the risk that the proposed Business Combination disrupts current plans and operations of Sonder or its subsidiaries as a result of the announcement and consummation of the transactions described herein; (f) the ability to recognize the anticipated benefits of the proposed Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (g) costs related to the proposed Business Combination; (h) changes in applicable laws or regulations, including legal or regulatory developments (such as the SECs recently released statement on accounting and reporting considerations for warrants in SPACs) which could result in the need for Gores Metropoulos II to restate its historical financial statements and cause unforeseen delays in the timing of the Business Combination and negatively impact the trading price of Gores Metropoulos IIs securities and the attractiveness of the Business Combination to investors; (i) the possibility that Sonder may be adversely affected by other economic, business and/or competitive factors; (j) the inability of Sonder to enter into definitive documentation with respect to the Delayed Draw Notes prior to closing, and (k) other risks and uncertainties indicated from time to time in the final prospectus of Gores Metropoulos II, including those under Risk Factors therein, and other documents filed or to be filed with the Securities and Exchange Commission (SEC) by Gores Metropoulos II.
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