This Real Estate Tech Company is Margin With This Billionaire Led SPAC
Matterport has received millions in funding from several venture capital firms since its founding in 2011, but is choosing to go public via a blank-check company, also known as a SPAC. SPAC is an acronym for special purpose acquisition company. This non-traditional way of going public has been trending upwards in recent years.
The SPAC that merged with Matterport, Gores Holdings VI, is led by billionaire investor Alec Gores.
Matterport is a real estate technology company that allows individuals to take virtual tours of properties. In the past year, the startup has seen massive growth amid the pandemic ramping up difficulties for real estate agents.
“We believe the proposed transaction with Gores Holdings VI unlocks the potential of our platform and accelerates our mission to make every building and every space more valuable and accessible,” Matterport CEO RJ Pittman said. “Our deep industry experience and proven track record have made Matterport the platform of choice to digitize millions of buildings across diverse industries and markets.”
He added: “building on this momentum, we are scaling all aspects of our business to transform the $230 trillion built world.”
In the process of going public, the company will raise $295 million from investors including Tiger Global Management, Senator Investment Group, Dragoneer Investment Group, Fidelity Management & Research Co., and Blackstone Group. In addition, Gores Holdings VI will allocate $345 million in cash to Matterport as part of the deal.
The combined company will have an equity value of $2.9 billion and an enterprise value of $2.3 billion. The merger and listing is scheduled for Q2 of 2021. The new ticker will be "MTTR" and will trade on the NASDAQ.