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Matterport to go public via SPAC

Matterport, Inc., announced on February 8, 2021, to go public with a development stage company supported by billionaire Alec Gores through a merger.

Gores Holdings VI is sponsored by an affiliate of The Gores Group, LLC. A SPAC, i.e., a special purpose acquisition company, it has entered into a definitive agreement providing for a business combination to make Matterport a publicly listed company.

Upon closure of the deal, the combined company will have a $2.9 billion equity value and an implied pro forma enterprise value of about $2.3 billion. The tie-up and listing are scheduled for the second quarter of 2021. The company will trade on the NASDAQ under the stock ticker “MTTR” while the Gores Group is already on NASDAQ.

Matterport is a spatial data company offering the real estate sector a platform that transforms any physical space into an immersive and interactive three-dimensional digital replica. The Sunnyvale, California-based company has built a massive spatial data library, with more than 10 billion square feet of space.

The firm makes 3D high-end cameras for virtual tours of buildings and also provides a platform that enables users to upload and view the spaces they have scanned via the ‘Matterport Capture’ iPhone app. The company generates revenue mainly under Software as a Service model, a recurring revenue, and expanded its subscriber base by more than 500 percent in 2020. They have digitized millions of buildings across diverse markets and industries.

The companies will raise approximately $295 million from investors to support the transaction. The PIPE transactions will be anchored by leading investors including Senator Investment Group, Tiger Global Management, Fidelity Management & Research Co., Dragoneer Investment Group, and accounts managed by Blackstone Group. All current Matterport shareholders will retain their equity holdings post Matterport's transition into a publicly listed company. Gores VI will also deliver Matterport with $345 million in cash that it has previously raised.

The shareholders are entitled to hold approximately 75 percent of the issued and outstanding shares of common stock of the combined company directly following the closure. Post the business combination, Matterport’s management led by CEO RJ Pittman will continue to function and operate under its existing management team, with revenues of $85.9 million in 2020, up to 87% year by year.

The proposed deal with Gores Holdings VI is expected to scale Matterport’s every business aspect to transform the $230 trillion built world. The firm hopes to unleash its digital platform’s potentials and boost its mission to make every space more accessible and valuable.