Global private equity firm Gores Holdings IV plans to merge with United Wholesale Mortgage and take the company public.
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 $16.1 billion – nearly ten times the company’s estimated 2021 adjusted net income of approximately $1.7 billion.
Founded in 1987, the Gores Group specializes in acquiring and partnering with mature and growing businesses. The company is headquartered in Los Angeles, Calif., with offices in London and Boulder, Co.
Founded in 1986 and based in Pontiac, Michigan, UWM is the largest wholesale mortgage originator in the U.S.
Along with approximately $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 $500 million private placement, led by Alec Gores, chairman and CEO of the Gores Group, and including large institutional investors.
Upon completion of the transaction, including the private placement, the current owners of UWM will retain approximately 94% ownership of the combined company.
The existing management team, led by long-standing president and CEO Mat Ishbia, will continue to lead the business.
“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,” Ishbia says in a 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,” Ishbia adds. “Working with the Gores team has been a great benefit in helping to make this transaction possible.”