Virtual-reality Tech Firm Matterport to Go Public
February 9, 2021
Matterport, a real estate virtual-reality tech firm leader, announced plans this week to become a publicly listed company on NASDAQ.
Following a recent trend embraced by investors over the past year, Matterport will be joining other real estate–related companies like Opendoor and Porch.com that recently went public via a special purpose acquisition company. Matterport, which designs software that allows virtual walkthroughs, is being sponsored for its SPAC by Gores Holding VI, an affiliate of The Gores Group LLC.
Matterport confirmed this week that it had entered into a definitive agreement for the business combination. The combined company will be named Matterport Inc. and will be listed on NASDAQ under the ticker symbol “MTTR.”
The transaction values the combined company at more than $2 billion, according to the company’s release.
"Real estate and the built world is without question among the biggest frontiers ready for digitization, and in our view, Matterport is the clear market leader in the category with enormous potential still ahead," says Justin Wilson, senior managing director of The Gores Group.
Virtual walkthroughs have become increasingly important in the COVID-19 pandemic as a way for buyers to shop for properties online.
Matterport was founded in 2011. It has become a market leader in 3D renderings of properties across the country. The company touts it has digitized millions of buildings, homes, office spaces, museums, retail space, and more in 150-plus countries. It grew its subscriber base by more than 500% in 2020 alone. Also, total revenue in 2020 was $85.9 million, up 87% year over year.
"Matterport has been at the forefront of spatial computing for the built world for over a decade,” says RJ Pittman, CEO of Matterport. “We believe the proposed transaction with Gores Holdings VI unlocks the potential of our platform and accelerates our mission to make every building and every space more valuable and accessible. We're thrilled to partner with The Gores Group, an innovative team with deep technology experience and a history of fueling major technology transformations."
Gores Holdings VI is a publicly listed, $345 million special purpose acquisition company. It is the seventh vehicle sponsored by an affiliate of The Gores Group, a global investment firm founded in 1987. In a news release, Gores says its strategy is to identify and complete business combinations with differentiated, market-leading companies with strong equity stories, which will benefit from the growth capital of the public equity markets.
The transaction is expected to close in the second quarter of 2021.
Updated: March 05, 2021