United Wholesale Mortgage—the biggest U.S. wholesale mortgage originator—is looking to go public via merger with the special-purpose acquisition company (SPAC) Gores Holdings. This deal could value the lender at $16.1 billion, a record for a SPAC deal.

The Wall Street Journal first reported the news.

What Happened: Gores had raised $425 million in a public listing in January. United Wholesale Mortgage plans to combine with the SPAC via a merger. The combined company will operate under the United name and list on the NASDAQ under the ticker symbol UWMC.

Under the agreement, United Wholesale will retain approximately 94% ownership of the combined company and get $425M in cash held in Gores’s trust, reports Reuters. The company will also raise $500 million from a private placement.

The deal is expected to be done by the end of the year.

Why It’s Important: SPAC deals are on the rage on Wall Street as startups and private companies look to exploit this route to go public expeditiously.

Blank check companies have been a key driver for initial public offerings in 2020 accounting for 44% of total volume and raising a record $40 billion, which is four times the volume for 2019.

High-profile investors like Bill Ackman and Michael Klein have raised billions through SPACs this year. Other notable people on the SPAC bandwagon are former House Speaker Paul Ryan and Gary Cohn, an ex-economic aide to President Trump.

Detroit Connection: United Wholesale Mortgage, also known as United Shore, is based in Pontiac, Michigan. Gores Holdings is led by Tom Gores, who has owned the NBA’s Detroit Pistons since 2011.

The move to go public comes less than two months after mortgage giant and fellow Detroit-area company Rocket Companies went public. Rocket trades around $21.57 per share, above its IPO price of $18 per share.

Price Action: GHIV shares have jumped 11% pre-market to $12 at the time of publication Wednesday.

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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