Software Acquisition Group Inc. II Announces Closing of $150,000,000 Initial Public Offering

Rhea-AI Summary

Software Acquisition Group Inc. II (NASDAQ: SAIIU) successfully closed its initial public offering on September 17, 2020, raising $150 million from 15 million units priced at $10.00 each. Each unit comprises one share of Class A common stock and half a redeemable warrant, allowing a purchase of stock at $11.50 per share. The company targets merger and acquisition opportunities in the software sector, focusing on private equity and corporate carve-outs. The offering includes a 45-day option for underwriters to purchase additional units.

Positive

• Raised $150 million through IPO, enhancing capital for future acquisitions.
• Focus on software companies targets a growing market with high potential.
• Strong leadership team with experience in acquisitions.

Negative

• No immediate business combination identified, posing investment uncertainty.
• Potential dilution of shares if underwriters exercise their option for additional units.

New York, NY, Sept. 17, 2020 (GLOBE NEWSWIRE) -- Software Acquisition Group Inc. II (NASDAQ: SAIIU) (the “Company”) announced today that it closed its initial public offering of 15,000,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $150,000,000. The Company granted the underwriters in the initial public offering, a 45-day option to purchase up to 2,250,000 additional units solely to cover over-allotments, if any.

The Company’s units are listed on the Nasdaq Capital Market (“Nasdaq”) and commenced trading under the ticker symbol “SAIIU” on September 15, 2020. Each unit consists of one share of the Company’s Class A common stock and one-half of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Only whole warrants are exercisable. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Once the securities comprising the units begin separate trading, shares of the Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “SAII” and “SAIIW,” respectively.

The Company is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any business or industry, it intends to focus its search on software companies, especially those targeting enterprise vertical sectors owned by private equity and venture capital firms as well as corporate carve-outs. The Company is led by Chairman and Chief Executive Officer, Jonathan Huberman, and Vice President of Acquisitions, Mike Nikzad.  In addition to Messrs. Huberman and Nikzad, the Board of Directors includes Andrew Nikou, Stephanie Davis, Peter Diamandis, Steven Guggenheimer and Matt Olton.

B. Riley Securities, Inc. acted as sole book-running manager of the offering.

Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of warrants, $150,000,000 (or $10.00 per unit sold in the public offering) was placed in the Company’s trust account. An audited balance sheet of the Company as of September 17, 2020 reflecting receipt of the proceeds upon consummation of the initial public offering and the private placement will be included as an exhibit to a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission (the “SEC”).

The offering was made only by means of a prospectus. Copies of the prospectus relating to the offering may be obtained from B. Riley Securities, Inc. at 1300 17th Street N., Suite 1400, Attn: Syndicate Prospectus Department, Arlington, Virginia 22209, by telephone at (800) 846-5050 or by email at prospectuses@brileyfin.com.

A registration statement relating to these securities was declared effective by the SEC on September 14, 2020.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and the anticipated use of the net proceeds. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
                                                    
Contact

Jonathan Huberman                                                                           
Chief Executive Officer
Software Acquisition Group Inc. II
jon@softwareaqn.com | 310.991.4982

FAQ

What was the IPO price for Software Acquisition Group Inc. II?

The IPO price was $10.00 per unit.

How much capital did Software Acquisition Group Inc. II raise in the IPO?

The company raised $150 million.

What does each unit of SAIIU consist of?

Each unit consists of one share of Class A common stock and one-half of one redeemable warrant.

What are the trading symbols for shares and warrants of Software Acquisition Group Inc. II?

The shares trade under the symbol SAII and the warrants under SAIIW.

What is the focus of Software Acquisition Group Inc. II's business strategy?

The company intends to focus on software companies, particularly targeting enterprise vertical sectors.