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Under the agreement, United Wholesale will retain about 94%
ownership of the combined company and will get about $425
million in cash held in Gores's trust account along with $500
million from a private placement.
Once the deal is completed, the combined company will be listed
on Nasdaq and named UWM Corp, the Michigan-based company said,
adding that the deal would make UWM the largest SPAC transaction
so far.
United Wholesale's current Chief Executive Officer Mat Ishbia
will continue to lead the business with the existing management
team.
Gores Holdings IV, which went public at the beginning of this
year, had raised $425 million from the offering.
The deal comes a month after Gores' other SPAC, Gores
Metropoulos Inc, merged with autonomous vehicle sensor firm
Luminar with plans to go public in the fourth quarter.
SPACs, also known as blank-check firms, are shell companies that
raise funds through an initial public offering (IPO), with an
intention to acquire a private company.
High-profile investors such as Bill Ackman and Michael Klein
have raised billions through their SPACs in 2020 as the vehicle
becomes an increasingly popular route to the public markets over
a traditional IPO.
(Reporting by Maria Ponnezhath in Bengaluru and Krystal Hu in
New York; Editing by Bernard Orr)
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