Sonder moves step closer to January SPAC merger

US: Next-generation lodging company Sonder has moved a step closer to going public in January after a registration statement was filed in connection with the proposed business combination between Sonder and special purpose acquisition company [SPAC] Gores Metropoulos II.

The amended registration statement was filed with the US Securities and Exchange Commission on 20 December and a special meeting for shareholders to vote on the SPAC merger will be held on 14 January.

Should the combination be approved by shareholders, the merger will become effective immediately and Sonder’s common stock and publicly traded warrants are expected to be listed on the Nasdaq Global Market under the ticker symbols “SOND” and “SONDW”. The company expects to raise approximately $310 million in PIPE [private investment in public equity] proceeds, up to $450 million in funds in Gores Metropoulos II’s trust account and $165 million of Delayed Draw Notes to fund operations and support new and existing growth initiatives.

Francis Davidson, co-founder and CEO of Sonder, said: “We successfully navigated the initial challenges of the pandemic and our momentum has only increased. We’ve hit company-record revenue levels for the last two quarters, raised our total revenue and adjusted EBITDA outlook for full year 2021, entered multiple new markets across the world and expanded rapidly in existing ones.

“In the last year alone, we’ve seen shifts in travel preferences and new categories of travellers emerge that choose us for their stays. As travellers demand change, we’ll keep innovating and relentlessly pursuing our mission to revolutionise hospitality and make a world of better stays open to all,” he added.

The news comes in the wake of Sonder’s reporting of record operating and financial performance in Q3 2021, including a sharp acceleration in booking demand, with total revenue seeing a 155 per cent year-on-year increase to $67.5 million.

Launched in 2014, Sonder operates in over 35 markets spanning ten countries and three continents. Its co-founder and global head of real estate, Martin Picard, recently spoke on the STRz podcast about the company’s strategy throughout the pandemic, expansion plans and changing consumer behaviour.

Like Sonder, Inspirato and OYO are two of the high-profile companies in the short-term rental space due to go public in 2022.