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Last updated on February 3rd, 2021 at 11:24 am
United Wholesale Mortgage is going public through a merger with “blank check” company Gores Holding IV this deal will value the company at more than $16 billion.
One of Southeast Michigan’s fastest-growing companies, United Wholesale operates under the brand name United Shore.
UWM’s intention to go public in less than two months after rival mortgage lender, Detroit-based Rocket Companies Inc., made $1.8 billion in a public offering.
Gores Holdings IV (NASDAQ: GHIV), which is affiliated with California-based private equity fund, The Gores Group LLC is a publicly-traded “special purpose acquisition vehicle,” a company designed to purchase another company as a mechanism for becoming publicly traded.
According to a release, the Gores holding company raised $425 million in its public offering earlier this year. Other investors have committed another $500 million to the deal.
The $16.1 billion valuation makes for the largest SPAC deal to date, according to the company.
The transaction is expected to occur in the fourth quarter of this year, and ones it is completed the combined company will operate under the UWM name and the Class A common stock will be listed on the NASDAQ under the new ticker symbol UWMC.
The Gores holding company will also change its name to UWM Corp.
“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 and CEO Mat Ishbia said in the release.
“To that end, we look forward to granting our team members equity in the Company that they have helped build and enabling them to participate in our future success.
We believe that being a public company will also allow us to help our mortgage broker clients continue to build and grow their businesses, generating value for all of our stakeholders.
Working with the Gores team has been a great benefit in helping to make this transaction possible.”
According to a release, UWM’s current owners, led by Ishbia, will retain 94% ownership of the combined company.
“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,” Gores said in the release.
“As a public company, UWM will be well-positioned given its significant competitive advantages and we look forward to working together to accelerate the next phase of growth and to drive value for all of our stakeholders.”
According to figures from SPAC insider last year SPAC IPOs were at 59 while this year has been big with 108 so far.
These 108 companies have raised a total of more than $41.5 billion with an average IPO size of $384.6 million.
Reference Source: Crain’s Detroit Business
