Polestar Is The 9th SPAC Merger For The Gores Group: Here's How The Previous Deals Performed And What's Next

One of the top names in SPACs announced a ninth SPAC merger this week. The Gores Group led by chairman Alec Gores and CEO Mark Stone announced the deal between Gores Guggenheim Inc GGPI and electric vehicle company Polestar.

Since 2016, The Gores Group has announced nine deals valuing the acquiring companies at more than $58 billion.

Here is a look at how the share prices of the eight previous deals have performed since they were announced. Share return is based on a $10 assumed share offering price and do not account for gains on warrants.

November 2016: The Gores Group's first SPAC deal dates back to November 2016 when the company brought well-known Twinkie manufacturer Hostess Brands Inc TWNK public. Hostess went through bankruptcy in 2012 and had revamped itself. Shares of Hostess Brands trade at $17.24, up 72% for the former SPAC.

October 2018: Smart transportation and mobility company Verra Mobility Corp VRRM was announced in October 2018, valuing the company at $2.4 billion. Shares of Verra are up 58% since the IPO.

February 2020: PAE Inc PAE is a global leader in government services and support. The company was taken public via a Gores SPAC, valuing the company at $1.5 billion. Shares of PAE are down 40% since the offering, now trading at around $6. The company has recently announced several new government deals and said in August that it was seeing a pickup in contract awards activity.

December 2020: Lidar company Luminar Technologies Inc LAZR went public in 2020, valued at $2.9 billion. Shares of Luminar are up 75% trading at $17.53 at the time of writing. Shares traded as high as $47.80 since the deal was announced.

January 2021: The largest wholesale mortgage company in the U.S. went public via a SPAC merger that closed in early 2021. The announced merger valued UWM Holdings Corp UWMC at $16.1 billion in one of the largest SPAC deals ever announced at the time. Shares of UWMC hit a high of $12.45 and have fallen since completing the merger. Shares of UWMC are down 41% since their offering.

Related Link: The Next Tesla Or Lucid Motors? The Polestar SPAC Merger Could Put The EV Maker In The Lead

July 2021: Spatial data company Matterport Inc MTTR went public in July in a deal that valued the company at $2.3 billion. The company has been a favorite of retail traders, several notable analysts and CNBC regulars. Shares of MTTR are up 109% since its offering.

August 2021: Metal and glass packaging company Ardagh Metal Packaging SA AMBP is a leader worldwide in several business segments. The company is seeing the growth of its recyclable products for customers looking for new sustainable solutions. Gores valued the company at $8.5 billion. Shares of the company are up 1% since the offering and traded as high as $21.74 since the deal was announced.

Q4 2021: Sonder, a lodging and hospitality startup, was the last announced as a Gores SPAC deal with a $2.2 billion valuation. The deal is expected to close in the fourth quarter of 2021 through a merger with Gores Metropoulos II Inc GMII. Sonder refurbishes short-term rentals that are then listed on its platform and with rental sites such as Airbnb Inc ABNB and Vrbo, owned by Expedia Group Inc EXPE. Shares of GMII are down 1% to $9.95 since the offering.

Share Performance: Five of the seven completed deals have positive share price returns with three returning over 70%. Two of the completed deals have seen shares fall 40% and 41%, respectively, since the offerings.

The average return of the last eight SPAC deals announced by The Gores Group is 29%.

What’s Next: Polestar is valued at $20 billion by The Gores Group, its largest SPAC deal announced to date. The company has cars on the road and revenue along with aggressive production and revenue projections.

Several SPACs from The Gores Group remain on the hunt and are currently traded without completed deals. The list includes:

  • Gores Holdings VII Inc GSEV
  • Gores Holdings VIII Inc GIIX
  • Gores Technology Partners Inc GTPA
  • Gores Technology Partners II Inc GTPB

Photo by NordWood Themes on Unsplash

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