Is Matterport A Buy Before The Spac Merger?

If a contractor has a precise 3D map of a building, it makes the whole design process so much easier. Equipment design, facilities management, tons of applications. For new IPOs, overvaluation is a big concern, even for those taking the SPAC route. The company expects its 2021 revenues to hit $123 million—a number that will likely multiply five times over closer to 2025. Unlike many high-growth companies, Matterport’s prospects of profitability are actually high.

It’s the best 3D mapping camera you could buy pretty much, and integrates perfectly with their platform. In anticipation of the merger, Gores Holding adopted amended and restated bylaws. The new bylaws imposed transfer restrictions on shares of Matterport Class A common stock. The transfer restrictions prevented certain holders of Class A common stock “immediately following the closing” from trading their shares for 180 days post-merger. Brown brought suit against Matterport alleging the transfer restrictions did not apply to him, the transfer restrictions were invalid, and individual defendants violated their fiduciary duties in connection with the merger. Matterport is pursuing a multi-pronged business plan includes scanning, SaaS AI and hosting.

The company has over 250,000 customers across 150+ countries, including Airbnb , Hyatt , and many more. Gores SPAC will provide up to $640 million in gross proceeds, comprising $345 M cash from Gores Holdings VI and $295 million in fully committed common stock purchase at $10.00 per share. When the transaction is completed, MTTR will join the growing ranks of pure-play spatial computing companies, which include booming companies like PTC, which just joined the S&P 500, and Autodesk.

However, the way markets look at tech companies has changed over the last year. There are multiple examples to show the valuation premium that tech companies are attracting. For example, online gaming platform Roblox, which shunned the traditional IPO for a direct listing, has raised private capital at a valuation that’s 7x its valuation in a funding round in 2020. The valuation that Matterport has managed to command in the merger deal is way above its valuation in the private market.

Market leadership, diverse use cases, and datafication are key competitive advantages for the company.

Latham & Watkins and Orrick served as legal adviser and general corporate counsel, respectively, to the spatial data company in the transaction. “We’re at the dawn of a new era for what’s possible when buildings become data. The Matterport SPAC merger will provide capital to accelerate the company’s international expansion and SaaS tech/hosting, and may even become a platform for competitors’ scans. Privacy is also an issue with a digital twin of a private interior space and again, here Matterport also has an edge, since its the owners and tenants of the spaces who are posting their data to Matterport’s platform. Through this sophisticated, yet powerful, technology, Matterport has created the largest spatial data library in the world, with more than 4.4 million spaces under management and 10 billion square feet of space scanned.

A Forecast For Matterport Stock

The projected post-SPAC valuation of at least $1 billion is a bit rich, but not totally unfair. GHVI shares have fallen by more than 46 percent since their peak in mid-February when the shares were trading at $24.46. Now, at $13.17 per share, investors are better positioned to earn from a pre-merger SPAC investment.

Fintech startup Affirm also attracted a big premium over its private market valuation in the IPO. The stock continued to soar after the listing and now has a market capitalization of over $32 billion, which is over 10x higher than its private market valuation. Matterport plans to go public through a reverse merger with GHVI. SPACs don’t have any real business operations and are formed with the sole aim of acquiring another company.

Li-Cycle is expected to receive approximately $615 million in gross proceeds on the deal, while 100 percent of Li-Cycle’s existing shares will roll into the combined company. Gores Holdings VI today announced a July 20 meeting for shareholders to vote on the SPAC’s proposed merger with Matterport, a spatial data company. The Internal Revenue Service has proposed rule changes that could significantly impact how beneficiaries will manage inherited retirement accounts. Matterport has evolved from a slow-growing maker of expensive 3D cameras to a subscription software company aiming to help create and manage digital versions of the world’s physical spaces, Bloomberg reports. The company believes there’s a large total addressive market of more than $1.2 trillion for the digitization of spaces, with less than one percent of space currently digitized and Matterport leading the way.

Fintech Acquisition Vi Prices $220m Ipo

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. Have you ever done a Google search of a restaurant, cafe, or shopping store and wonder what the space looks like?

Also, it’s worth noting that all existing Matterport shareholders are staying with the company as it goes public in the SPAC merger, which demonstrates their confidence in its potential. Its stock will trade on Nasdaq under “MTTR” ticker symbol upon closing of the SPAC merger. GHVI SPAC shareholders and sponsors will own about 15 percent of Matterport stock.

Gores Holdings Vi’s Ghvi Role In The Deal

If Matterport’s growth projections are any guide, the stock should keep rising as it hits the milestones. The company forecasts revenue to grow to $123 million in 2021 from about $86 million in 2020. It sees revenue topping $202 million in 2022 and hitting $747 million in 2025. The total money raised through IPOs rivaled the money raised through traditional IPOs.

Key players in this category include Snapchat , Facebook, and Apple . The virtual reality industry is expected to experience secular growth and Matterport aims to bring virtual reality into the built world. Brian Withers has no position in any of the stocks mentioned. Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gores Holdings VI, Inc.

• CNBC’s Jim Cramer, who is not shy about criticizing SPACs, on Thursday highlighted a trio of stocks that he believes are actually worth owning after completing their reverse mergers with blank-check companies.
• The pandemic accelerated demand for Matterport’s 3D renderings of physical spaces.
• Now, at $13.17 per share, investors are better positioned to earn from a pre-merger SPAC investment.
• The former Facebook executive and venture capitalist, yesterday invested in two companies going public via a SPAC — smart lockmaker Latch and solar lender Sunlight Financial.
• The company has over 250,000 customers across 150+ countries, including Airbnb , Hyatt , and many more.
• The valuation that Matterport has managed to command in the merger deal is way above its valuation in the private market.

Adding fuel to the fire is the phenomenal growth of the real estate market. As a leader in the spatial data and virtual tour industry, Matterport is well-positioned to enhance the digital experience in a rather low-tech real estate sector. While Matterport has strong value propositions for real estate owners and massive growth potential, a few things prevented me from taking a position in the company. Matterport sells its product as a software-as-a-service product.

Should You Buy Ghvi Stock Before Matterport Merger Date?

Matterport was founded in 2011 and has established itself as the market leader in the spatial data category by turning physical spaces into an interactive 3D digital twin (a digital copy of a real-world place or object). Big opportunity here, their data becomes much more valuable the bigger it gets. Their technology is just leaps and bounds above anyone else. They have that recurring revenue that Brian loves, all their subscription-based revenue. They also have hardware that they sell that is proprietary to them. For example, their Matterport Pro2 3D mapping camera sells for over $3,000.

Gores Group, the SPAC’s sponsor, is the same one that took lidar sensor company Luminar Technologies public. The group also sponsored Verra Mobility and Hostess Brands to the public market. To be sure, companies like Sketchfab, Polycam, and https://xcritical.com/ Trnio are indirect competitors in this space, but they have a broader focus, and way less money. Its Lightship platform for creating AR apps is acquiring massive amounts of crowdsourced, geolocated spatial data from its Pokemon Go players.

However, with virtual tours, real estate agents and potential renters/buyers do not have to meet in person. Only when serious buyers want to finalize a deal should they be welcomed to inspect the space more thoroughly. Otherwise, window shoppers can immerse themselves in virtual tours without having to waste agents’ time.

Operating expenses are forecast to be $120 million in 2021, $170 million in 2022, and $234 million in 2023. The company has ample cash to finance matterport spac merger its operations for several years even if it doesn’t make any money. But it already generates revenue and a profit is expected by 2024.

Gores Holdings Vi, Inc

Gores Holdings VI is the seventh SPAC vehicle affiliated with The Gores Group, a nearly 35-year-old global investment company. To date, the company has completed five other SPAC mergers, including one with United Wholesale Mortgage. Investors should also note that Matterport is going public well-funded.

Matterport Set To Go Public Through A Spac Merger With Gores Holdings Vi

Some of Matterport’s biggest growth areas include creating digital twins of physical buildings for purposes of property appraisal, building renovations, and office planning for a post-COVID era. If they can maintain their trajectory and hit those hopeful numbers, early SPAC investors could be golden. Terms call for Matterport to receive the proceeds from a $295 million PIPE as well as the approximately $345 million in cash held in the Gores VI trust account.