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United Wholesale Mortgage, LLC and Gores Holdings IV, Inc. Announce Closing of Business Combination
Source: Business Wire
UWM to begin trading on NYSE under ticker “UWMC”
Transaction strengthens UWM’s position as #1 wholesale mortgage lender in the U.S. residential mortgage market
United Wholesale Mortgage, LLC ("UWM"), the #1 wholesale and purchase mortgage lender in the U.S., and Gores Holdings IV, Inc. ("Gores Holdings IV") (NASDAQ: GHIV, GHIVU, and GHIVW), a special purpose acquisition company (“SPAC”) sponsored by an affiliate of The Gores Group, LLC ("The Gores Group" or "Gores"), today announced the closing of their previously announced business combination, which hails as the largest SPAC transaction to date with a valuation of approximately $16 billion. In connection with the closing, Gores Holdings IV changed its name to UWM Holdings Corporation and will commence trading on the New York Stock Exchange (“NYSE”) under the new ticker symbol “UWMC” on January 22, 2021. The transaction was approved at a special meeting of the Gores Holdings IV stockholders on January 20, 2021.
The successful closing of the transaction builds on the significant momentum UWM has achieved over the past several months. UWM has realized record third quarter earnings, with originations exceeding $54.2 billion in mortgage volume, net income of $1.45 billion and production volume exceeding the total 2019 production record.
As part of its commitment to help independent mortgage brokers operate their businesses even more nimbly, efficiently and competitively, UWM recently launched technologies including UWM InTouch, a mobile app that provides brokers access to do almost every aspect of their jobs, from underwriting all the way through Clear to Close, within the app rather than using a desktop computer, and Blink+, which now offers loan officers a point of sale, loan origination system and customer relationship manager all-in-one package.
UWM also increased its workforce and now has over 8,000 team members, to whom it provides career training for positions in sales, information technology, underwriting and mortgage operations.
Mat Ishbia, UWM‘s president and CEO said, “Today is a historic day for the entire UWM team and all independent mortgage broker partners throughout America. We are grateful to The Gores Group for their expertise in the SPAC process, they are the experts in these things and we’ve appreciated all of the guidance they’ve provided to get us to our listing day. While UWM is already firmly established as the number one wholesale mortgage lender, with a huge leg up on technology and strong operational efficiencies, we never relax. We have a clear objective of becoming the nation’s number one overall mortgage lender and will continue to work tirelessly to empower independent mortgage broker partners to build and grow their businesses so that they can continue offering a borrower experience that is easier, faster and less expensive than any alternative.”
Alec Gores, Chairman and CEO of The Gores Group, stated, “UWM’s unparalleled market position, customized technology and deep bench of talent have brought the company to the forefront of the mortgage industry. We’re excited about this important milestone and we are confident that Mat’s exceptional leadership, along with his team’s dedication and experience, will continue to drive long-term value for all stakeholders for years to come. We look forward to UWM’s continued success as a public company as it capitalizes on the significant growth opportunities ahead.”
Transaction Details
In connection with the closing of the Business Combination, UWM has received approximately $925 million of gross proceeds which includes approximately $425 million of cash from Gores Holdings IV, as well as $500 million in proceeds from the private placement completed in connection with the Business Combination, which included 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. The existing management team, led by long-standing President and CEO Mat Ishbia, will continue to lead the business.
Additional information about the completed Business Combination will be provided in a Current Report on Form 8-K to be filed by UWM Holdings Corporation with the Securities and Exchange Commission and available at sec.gov.
Advisors
Goldman Sachs & Co. LLC acted as financial advisor to UWM. Greenberg Traurig, LLP acted as legal advisor to UWM.
Deutsche Bank Securities and Morgan Stanley & Co. LLC acted as lead financial advisors, lead capital market advisors and exclusive private placement agents to Gores Holdings IV, while Moelis & Company LLC acted as financial advisor. Weil, Gotshal & Manges LLP acted as legal advisor to Gores Holdings IV.
Forward Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for UWM’s business, including UWM’s plans of growing the independent mortgage broker channel and becoming the nation’s leader in mortgage originations and management estimates of the size of the residential mortgage loan market. These forward-looking statements are based on UWM’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements involve a number of known and unknown risks, uncertainties, assumptions that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks include (i) UWM’s dependence on macroeconomic and U.S. residential real estate market conditions, including changes in U.S. monetary policies that affect interest rates; (ii) UWM’s reliance on its warehouse facilities; the risk of a decrease in the value of the collateral underlying certain of its facilities causing an unanticipated margin call; (iii) UWM’s ability to sell loans in the secondary market; (iv) UWM’s dependence on the government sponsored entities such as Fannie Mae and Freddie Mac; (v) changes in the GSEs’, FHA, USDA and VA guidelines or GSE and Ginnie Mae guarantees; (vi) UWM’s dependence on Independent Mortgage brokers to originate mortgage loans; (vii) the risk that an increase in the value of the MBS UWM sells in forward markets to hedge its pipeline may result in an unanticipated margin call; (viii) UWM’s inability to continue to grow, or to effectively manage the growth of, its loan origination volume; (ix) UWM’s ability to continue to comply with the complex state and federal laws regulations or practices applicable to mortgage loan origination and servicing in general; and (x) other risks and uncertainties indicated from time to time in the definitive proxy statement filed by Gores Holdings IV in connection with Gores Holdings IV’s solicitation of proxies for the Special Meeting, including those under “Risk Factors” therein. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
About UWM Holdings Corporation and United Wholesale Mortgage
Headquartered in Pontiac, Michigan, UWM Holdings Corporation (UWM) is the publicly traded indirect parent of United Wholesale Mortgage. UWM is the #1 wholesale lender in the nation six years in a row, providing state-of-the-art technology and unrivaled client service. UWM is known for its highly efficient, accurate and expeditious lending support, UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions. UWM's exceptional teamwork and laser-like focus on delivering innovative mortgage solutions are driving the company's ongoing growth and its leadership position as the foremost advocate for mortgage brokers. For more information, visit www.uwm.com or call 800-981-8898. NMLS #3038.
About Gores Holdings IV, Inc.
Gores Holdings IV was a special purpose acquisition company sponsored by an affiliate of The Gores Group for the purpose of effecting a merger, acquisition, or similar business combination. Gores Holdings IV completed its initial public offering in January 2020, raising approximately $425 million in cash proceeds. Prior business combinations for special purpose acquisition companies sponsored by affiliates of The Gores Group include: Hostess (Gores Holdings, Inc.), Verra Mobility (Gores Holdings II, Inc.), PAE (Gores Holdings III, Inc.) and Luminar (Gores Metropoulos, Inc.).
About The Gores Group, LLC
Founded in 1987 by Alec Gores, The Gores Group is a global investment firm focused on partnering with differentiated businesses that can benefit from the firm’s extensive industry knowledge and decades long experience. Gores Holdings IV and The Gores Group are separate entities with separate management, although there is overlap in size and industry of target acquisition and personnel involved. For more information, please visit www.gores.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005895/en/
For inquiries regarding UWM, please contact:
Matt Roslin
InvestorRelations@uwm.com
Nicole Yelland
Media@uwm.com
OR
Daniel Yunger / Lindsay Gross
Kekst CNC
Kekst-UWM@kekstcnc.com
For inquiries regarding The Gores Group and affiliates, please contact:
Jennifer Kwon Chou
Managing Director
The Gores Group
310-209-3010
jchou@gores.com
OR
John Christiansen / Cassandra Bujarski
Sard Verbinnen & Co
GoresGroup-SVC@sardverb.com
Nailed it lol
Yeah which is backwards to me. A company like NKLA had a 10bil valuation come merger. This company actually makes money and has tons of room to grow. They haven’t even had a drop in the bucket of potential revenue yet the price doesn’t reflect it
Going to be trading under symbol UWM tomorrow. This is a profitable company that will pay a dividend. Definitely not like the other SPAC companies out there that hardly have revenue, if any.
Where is the PR announcing the merger? Expect it tomorrow with the symbol change!
Never seen a SPAC like this
vote
do you guys have the link to vote?
GIHVW - the warrants are trading even today at $3.24 ore market - this is equal to GHIV or UWM $14.74 as against $12.39
That is the premium being given today - so market expects it to go up.
If you compare to RKT - it has market cap of $38 Billion
If UWM lists at say $14 - it still will have market cap around $11 Billion - so there is significant upside potential.
This SPAC does not have fancy technology behind it or known promoters so it is not taking off IMO
The CEO looks very good and articulate - so once it is listed under UWM - I think it may start going up and the Q1-2021 results will really push it higher. In one year this can touch $20 and give 70% returns based on $12.40 as today’s price
Not in one of the sexy categories, if it was ev, fintech or cloud based computing it would probably have taken off by now. My opinion is this one will be more of a slow and steady mover.
Yep..honestly think we’ll see all time highs after FINS in February
Hope so, feel like other hot SPACS took the ball from GHIV but it’s alright. The numbers are there to back it, they are projected to make 2bil this year which is more than most SPACs. Also offering a dividend. Hoping for $20 but will scale out
Been sitting an waiting ..18+ on Jan 22?
got your message. I went free ... think ihub priced like netflix is to much. congrats and appreciate it
I'm thinking this one takes off after option-ex on Friday.
I might even buy a few calls to add to the pile.
Knowing the timeline now, what are your thoughts on how it will perform? I'm thinking merger peak price won't be as high as first hoped, followed by a likely huge dip to shake out the adhd traders, then earnings come and the adults can take over and watch this double by Q1 earnings in April.
There's no way anyone should ever invest in a stock like this if they hate they idea of making money.
https://stocktwits.com/Trichrome/message/270996068
Agreed. I expect this trend up from here until the merger date now.
Nice uptick today! Merger 2 weeks away. Should be at least a modest rally.
Been wondering that myself. But apparently, according to a guy with more spac experience than me (this one is taking my cherry), this is typical. Gores most recent spac play LAZR shot up to $45+ in 3 days after the merger was complete.
Once they release the q4 fins this will run. If we're lucky we'll get a pull back before merger day to add more.
For now, I'm adding every chance I get and I don't care too much what the price is because it's all lower than my entry price.
What's with the selling today. Just when things are going to get great.
UWM is the most solid company to go public via a SPAC. Actually will pay a hearty dividend. This should be trading higher after the merger.
I've read a little about GHIV and people leery of the merge... but this is not a start-up EV company with no product. This is THE largest wholesale lender. This is a 16 BILLION dollar merge. Am I wrong for thinking people are way undervaluing how big this COULD be?
Same finance team that brought LAZR to market. Gores Holding, their fourth SPAC thus the “IV” in the ticker. Top notch reps. This company is a behemoth.
It does deserve to be higher, but let's just keep that a secret for now and load the f*ck out of it.
United Wholesale Mortgage is the most solid company going public via the SPAC route. A real operating company that will pay a dividend. This stock deserves to be much higher.
Slow and steady wins the race.
Hopefully we see $16-$18 by then
Merger meeting/vote date is Jan 20. Ticker change should happen the following morning Jan 21.
Jan 21st correct?
Merger date coming 2nd week of January. Bet this starts perking up shortly after the New Year. Feels like its slowly locking up.
excellent! was wondering when it would be as it seemed overdue...
Merge date finally.
Merger date announced
Yep, looking good
Lots of volume comin in now
Proxy Statement - Merger or Acquistion (definitive) (defm14a)
Source: Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) December 15, 2020
QAD Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-22823 77-0105228
(State or other jurisdiction (Commission (IRS Employer Identification Number)
of incorporation) File Number)
100 Innovation Place, Santa Barbara, California 93108
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (805) 566-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
? Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
? Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
? Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
? Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $0.001 par value
QADA
NASDAQ Global Select Market
Class B Common Stock, $0.001 par value
QADB
NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ?
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ?
It’s moving up AH
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