United Wholesale Mortgage to go Public through Gore SPAC
Posted on 09/23/2020
Pontiac, Michigan-based United Wholesale Mortgage (UWM) is a wholesale lender founded in 1986. Gores Holdings IV, Inc. 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 $425 million in cash proceeds. Prior business combinations for special purpose acquisition companies sponsored by affiliates of The Gores Group include: Hostess (Gores Holdings, Inc.), Verra Mobility (Gores Holdings II, Inc.), PAE (Gores Holdings III, Inc.) and recently announced Luminar (Gores Metropoulos, Inc.).
UWM is the trade name for United Shore Financial Services, LLC.
The Deal
Gores Holdings IV entered into a definitive agreement with respect to a business combination with UWM. Upon completion of the proposed transaction, the combined company will operate under the UWM name and the Class A common stock will be listed on NASDAQ under the new ticker symbol “UWMC.” The transaction values UWM at approximately US$ 16,052,000,000, or 9.5x UWM’s estimated 2021 Adjusted Net Income of approximately US$ 1.7 billion. Upon closing of the proposed business combination, the name of Gores Holdings IV will be changed to UWM Corporation.
Along with approximately US$ 425 million in cash held in Gores Holdings IV’s trust account, additional investors have committed to participate in the proposed business combination via a US$ 500 million private placement, led by Alec Gores, Chairman and CEO of The Gores Group, and including large institutional investors.
Alec Gores is the Chairman and Chief Executive Officer of The Gores Group.
Advisors
Deutsche Bank Securities and Morgan Stanley & Co. LLC acted as lead financial advisors, lead capital market advisors and exclusive private placement agents to Gores Holdings IV, while Moelis & Company LLC acted as financial advisor. Weil, Gotshal & Manges LLP acted as legal advisor to Gores Holdings IV.
Goldman Sachs & Co. LLC acted as financial advisor to UWM. Greenberg Traurig, LLP acted as legal advisor to UWM.