United Wholesale Mortgage in Pontiac and Gores Holdings IV Inc. in Los Angeles closed on their previously announced merger Thursday creating a $16 billion company.
At the closing, UWM 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, which included top-tier institutional investors.
The current owners of UWM will retain approximately 94 percent ownership of the combined company. The existing management team, led by President and CEO Mat Ishbia, will continue to lead the business.
As a result of the transaction, the Gores company changed its name to UWM Holdings Corp. and began trading today on the New York Stock Exchange under the new ticker symbol UWMC. Ringing the bell today at the exchange were Ishbia; Jeff Ishbia, founder and board member; Melinda Wilner, COO; and Alex Elezaj, chief strategy officer.
“Today is an historic day for the entire UWM team and all independent mortgage broker partners throughout America,” says Ishbia. “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.”
The completion of the merger builds on the momentum UWM has achieved over the past several months, the company says. UWM recorded 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 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 more than 8,000 team members, to whom it provides career training for positions in sales, information technology, underwriting, and mortgage operations.
“UWM’s unparalleled market position, customized technology, and deep bench of talent have brought the company to the forefront of the mortgage industry,” says Alec Gores, chairman and CEO of The Gores Group. “We look forward to UWM’s continued success as a public company as it capitalizes on the significant growth opportunities ahead.”