U.S based United Wholesale Mortgage LLC has announced that it will be going public through a merger deal with a special purpose acquisition company (SPAC) Gores Holdings IV Inc. (GHIV). This deal will value United Wholesale at $16.1 billion.
SPAC’s are also referred to as blank check companies.
Under the deal, United Wholesale will retain 94% of the merged company it will receive $425 million in cash from Gores. Additionally, UWM will receive an extra $500 million from a private placement.
UWM says it will use the proceeds to expand its technology platform and its marketing services.
CEO of UWM Mat Ishbia says the company had been weighing on going public so as to have access to additional capital. After many consultations and considerations finally UWM settled to go public through a SPAC with Gores back in April.
“SPAC is the most efficient and certain way to go public if you have the right partner. I believe there’s a lot of upside in it and I can derive that success by still owning 94% and continue to grow,” said the CEO.