Under the agreement, United Wholesale will retain about 94% ownership of the combined company and will get about $425 million in cash held in Gores’s trust account along with $500 million from a private placement.
United Wholesale’s current Chief Executive Officer Mat Ishbia will continue to lead the business with the existing management team.
Once the deal is completed, the combined company will be listed on Nasdaq and named UWM Corp, the Michigan-based company said, adding that the deal would make UWM the largest SPAC transaction so far.
The deal comes a month after Gores’ other SPAC, Gores Metropoulos Inc, merged with autonomous vehicle sensor firm Luminar with plans to go public in the fourth quarter.
What Happened :
Gores had raised $425 million in a public listing in January. United Wholesale Mortgage plans to combine with the SPAC via a merger. The combined company will operate under the United name and list on the NASDAQ under the ticker symbol UWMC.
About United Wholesale Mortgage
Headquartered in Pontiac, Michigan, United Wholesale Mortgage (UWM) is the #1 wholesale lender in the nation five years in a row, providing state-of-the-art technology and unrivaled client service, from the industry’s leading account executives.
UWM is known for its highly efficient, accurate and expeditious lending support, UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions.
UWM’s exceptional teamwork and laser-like focus on delivering innovative mortgage solutions are driving the company’s ongoing growth and its leadership position as the foremost advocate for mortgage brokers
About Gores Holdings IV, Inc.
Gores Holdings IV is a special purpose acquisition company sponsored by an affiliate of The Gores Group for the purpose of effecting a merger, acquisition, or similar business combination. Gores Holdings IV completed its initial public offering in January 2020, raising approximately $425 million in cash proceeds.
Prior business combinations for special purpose acquisition companies sponsored by affiliates of The Gores Group include: Hostess (Gores Holdings, Inc.), Verra Mobility (Gores Holdings II, Inc.), PAE (Gores Holdings III, Inc.) and recently announced Luminar (Gores Metropoulos, Inc.).
About The Gores Group, LLC
Founded in 1987 by Alec Gores, The Gores Group is a global investment firm focused on partnering with differentiated businesses that can benefit from the firm’s extensive industry knowledge and decades long experience.
Gores Holdings IV and The Gores Group are separate entities with separate management, although there is overlap in size and industry of target acquisition and personnel involved.
United Wholesale Mortgage to go public in deal that values it at $16.1 billion.
“Becoming a public company will enable us to advance our strategy and capitalize on new opportunities to expand our already established leadership in the mortgage industry under our unique family culture, which has been the cornerstone of our company’s success for the last 34 years,”
UWM President & CEO Mat Ishbia said in a release.
“We are pleased to partner with UWM in this milestone transaction. Mat and his team have built an impressive organization that is the market leader in wholesale lending and has a strong focus on culture and delivering quality service and offerings for its customers,”
The Gores Group CEO and Chair Alec Gores added.