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United Wholesale Mortgage to go public via SPAC

  • Gores Holdings IV (NASDAQ:GHIV) is up 24% premarket after agreeing to take United Wholesale Mortgage public via a merger. United is the country's largest wholesale mortgage originator, and will have a valuation topping $16B. The company is on track to underwrite almost $200B of mortgages this year, nearly double that of 2019.
  • The deal will give United nearly $1B in cash to help build the business further. Its key competitor is the recently gone-public Rocket Cos. (NYSE:RKT), parent of Quicken Mortgage.
  • Post-transaction, the combined company will operate under the UWM name and list on Nasdaq under the new ticker symbol "UWMC."
  • The transaction values UWM at approximately $16.1B, or 9.5x the estimated 2021 Adjusted Net Income of approximately $1.7B.
  • Transaction includes $425 million of cash from Gores Holdings IV and a $500 million private placement, anchored by top-tier 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.
  • Source: Press Release

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