Technology

Sonder looks to the Nasdaq for growth

It came to an agreement with the “specific purpose acquisition” company Gores Metropoulos. (Photo: 123RF)

One-off stays specialist Sonder, which was founded in Montreal in 2012, is looking to the New York Stock Exchange to accelerate its growth as COVID-19 vaccination accelerates in several places around the world .

As part of a transaction with the “special purpose acquisition” company Gores Metropoulos – whose shares are traded on the Nasdaq – announced on Friday, the new entity will be valued at US $ 2.2 billion. It will have cash in excess of US $ 700 million.

Co-founded in 2012 by two McGill University students, Francis Davidson and Martin Picard, Sonder presents itself as a new kind of hotel business by offering accommodation rentals on platforms. It operates more than 300 properties in 35 markets in eight countries.

In particular, the company signs long-term leases with property owners and then offers the rental of these spaces for short-term or medium-term stays.

Sonder expects to generate a turnover of around US $ 4 billion in 2025 thanks to an improvement in its real estate offer and the recovery in the tourism industry, still affected by the health crisis. The company, which has raised several hundred million dollars through fundraising rounds over time, is worth more than US $ 1 billion, earning it the name “unicorn,” used in the youth sector. technology companies.

Last December, Sonder announced the establishment of an international growth center in Montreal, which should translate into the creation of 700 jobs over the next five years.

To carry out this project, its Canadian subsidiary saw Investissement Québec grant it a loan of $ 30 million. A sum of $ 5 million will not have to be reimbursed if certain criteria are met in terms of job creation.

The combination with Gores Metropoulos is expected to be concluded during the second half of the year.

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