Sonder’s Business Combination with Gores Metropoulos II

Wilson Sonsini Goodrich & Rosati advised Sonder Holdings on the deal, while Weil advised Gores Metropoulos II, Inc.

Sonder Holdings, a leading next-generation hospitality company that is redefining the guest experience, and Gores Metropoulos II, Inc., a special purpose acquisition company (SPAC) sponsored by an affiliate of The Gores Group, LLC and by an affiliate of Dean Metropoulos of Metropoulos & Co., announced that they have entered into a definitive agreement to combine. The technology-driven hospitality business is expected to have a pro forma enterprise value of $2.2 billion and over $700 million of net cash at closing.

The business combination includes $650 million of cash proceeds from Gores Metropoulos II before expenses, including a fully committed PIPE of $200 million from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group. The proceeds from the business combination, which has been unanimously approved by the boards of directors of GM II and Sonder and is expected to close in the second half of 2021, will be used to continue global growth and expansion and increase investments in technology to drive an elevated guest experience.

Founded in 2014, Sonder works directly with real estate developers and property owners to lease, manage, and operate spaces, providing guests with exceptionally designed accommodations at affordable prices on a nightly, weekly, or monthly basis. Led by a management team with deep technology, operational and hospitality experience, the company’s tech-enabled, mobile-first platform provides seamless booking, digital concierge, and a unified, on-demand platform for maintenance and service. Sonder currently operates more than 300 properties across 35 markets in eight countries.

The Wilson Sonsini team representing Sonder in the transaction includes: Mark Baudler (Picture), Andrew Hoffman, Ethan Lutske, Christina Poulsen, Jonathan Chan, Catherine Riley Tzipori, Dennise Martinez, Jay Carter, Jill Fulwiler, Won Gi Chong, Annie Giomi, Avery Minor, Elia Perez Villamarin, Marianne Stark Bradley, Andy Hirsch, Amy Simmerman, Nathan Emeritz, Jason Schoenberg, John Aguirre, Michael Klippert, Michael Montfort, Kristen Stidham, Christopher Williams, Rebecca Stuart, Myra Sutanto Shen, Nika Antonikova, Adam Shevell, Sarah delos Santos, James McCann, David Perry, Martin Sul, Jeremiah Nelson, Matthew Staples, Lore Leitner, Daniel Chen, Stephen Heifetz, Anne Seymour and Seth Cowell.

Weil advised Gores Metropoulos II, Inc with a team led by Private Equity partner Kyle Krpata and includes Private Equity associates Grace Ly, Travis Michaud and Hilary Wilkerson. The team also included Mergers & Acquisitions partner James R. Griffin; Mergers & Acquisitions associates Austin Freeman, Michael Block and Christopher Perkins; Capital Markets partner Heather Emmel; Tax partner Chayim Neubort; Tax associate Carlos Parra; Executive Compensation & Benefits partner Amy Rubin; Executive Compensation & Benefits associates Akansha Mishra and Joshua Ehrhart (Not Yet Admitted in New York); Banking & Finance partner Gabriel Gregson; Banking & Finance associates Matt Berde and Ajinkya Joshi; Technology & IP Transactions partner Karen Ballack; Technology & IP Transactions/Privacy counsel Olivia Greer and Alexa Chu Clinton; Technology & IP Transactions/Privacy associates Meggin Bednarczyk and Justin Yun (Not Yet Admitted in New York); Environmental Head Annemargaret Connolly; Environmental counsel Matthew Morton; Regulatory Transactions partner Shawn Cooley; Regulatory Transactions associate Nathan Cunningham; Antitrust partner Vadim Brusser; Antitrust associate Dan Nobil; Complex Commercial Litigation partner David Singh; Complex Commercial Litigation associate Morgan Donoian MacBride; Employment Litigation partner Gary Friedman; and Employment Litigation counsel Celine Chan.

Involved fees earner: Karen Ballack – Weil, Gotshal & Manges; Meggin Bednarczyk – Weil, Gotshal & Manges; Matt Berde – Weil, Gotshal & Manges; Michael Block – Weil, Gotshal & Manges; Vadim Brusser – Weil, Gotshal & Manges; Celine Chan – Weil, Gotshal & Manges; Alexa Chu Clinton – Weil, Gotshal & Manges; Annemargaret Connolly – Weil, Gotshal & Manges; Shawn Cooley – Weil, Gotshal & Manges; Nathan Cunningham – Weil, Gotshal & Manges; Morgan MacBride – Weil, Gotshal & Manges; Joshua Ehrhart – Weil, Gotshal & Manges; Heather Emmel – Weil, Gotshal & Manges; Austin Freeman – Weil, Gotshal & Manges; Gary Friedman – Weil, Gotshal & Manges; Olivia Greer – Weil, Gotshal & Manges; Gabriel Gregson – Weil, Gotshal & Manges; James Griffin – Weil, Gotshal & Manges; Ajinkya Joshi – Weil, Gotshal & Manges; Kyle Krpata – Weil, Gotshal & Manges; Grace Ly – Weil, Gotshal & Manges; Travis Michaud – Weil, Gotshal & Manges; Akansha Mishra – Weil, Gotshal & Manges; Matthew Morton – Weil, Gotshal & Manges; Chayim Neubort – Weil, Gotshal & Manges; Dan Nobil – Weil, Gotshal & Manges; Carlos Parra – Weil, Gotshal & Manges; Christopher Perkins – Weil, Gotshal & Manges; Amy Rubin – Weil, Gotshal & Manges; David Singh – Weil, Gotshal & Manges; Hilary Wilkerson – Weil, Gotshal & Manges; John Aguirre – Wilson Sonsini Goodrich & Rosati; Mark Baudler – Wilson Sonsini Goodrich & Rosati; Jay Carter – Wilson Sonsini Goodrich & Rosati; Jonathan Chan – Wilson Sonsini Goodrich & Rosati; Daniel Chen – Wilson Sonsini Goodrich & Rosati; Won Gi Chong – Wilson Sonsini Goodrich & Rosati; Seth Cowell – Wilson Sonsini Goodrich & Rosati; Sarah delos Santos – Wilson Sonsini Goodrich & Rosati; Nathan Emeritz – Wilson Sonsini Goodrich & Rosati; Jill Fulwiler – Wilson Sonsini Goodrich & Rosati; Annie Giomi – Wilson Sonsini Goodrich & Rosati; Stephen Heifetz – Wilson Sonsini Goodrich & Rosati; Andrew Hirsch – Wilson Sonsini Goodrich & Rosati; Andrew Hoffman – Wilson Sonsini Goodrich & Rosati; Michael Klippert – Wilson Sonsini Goodrich & Rosati; Lore Leitner – Wilson Sonsini Goodrich & Rosati; Ethan Lutske – Wilson Sonsini Goodrich & Rosati; Dennise Martinez – Wilson Sonsini Goodrich & Rosati; James McCann – Wilson Sonsini Goodrich & Rosati; Avery Minor – Wilson Sonsini Goodrich & Rosati; Michael Montfort – Wilson Sonsini Goodrich & Rosati; Jeremiah Nelson – Wilson Sonsini Goodrich & Rosati; David Perry – Wilson Sonsini Goodrich & Rosati; Christina Poulsen – Wilson Sonsini Goodrich & Rosati; Catherine Riley Tzipori – Wilson Sonsini Goodrich & Rosati; Jason Schoenberg – Wilson Sonsini Goodrich & Rosati; Anne Seymour – Wilson Sonsini Goodrich & Rosati; Adam Shevell – Wilson Sonsini Goodrich & Rosati; Amy Simmerman – Wilson Sonsini Goodrich & Rosati; Matthew Staples – Wilson Sonsini Goodrich & Rosati; Kristen Stidham – Wilson Sonsini Goodrich & Rosati; Rebecca Stuart – Wilson Sonsini Goodrich & Rosati; Martin Sul – Wilson Sonsini Goodrich & Rosati; Myra Sutanto Shen – Wilson Sonsini Goodrich & Rosati; Elia Villamarin – Wilson Sonsini Goodrich & Rosati; Christopher Williams – Wilson Sonsini Goodrich & Rosati;

Law Firms: Weil, Gotshal & Manges; Wilson Sonsini Goodrich & Rosati;

Clients: Gores Metropoulos II; Sonder Holdings;

Author: Martina Bellini