Software Acquisition Group Inc. III Announces Closing of $200,000,000 Initial Public Offering

Rhea-AI Summary

Software Acquisition Group Inc. III (NASDAQ: SWAGU) successfully closed its initial public offering (IPO) on August 2, 2021, raising $200 million from the sale of 20 million units at $10.00 each. The offering includes a 45-day option for underwriters to purchase 3 million additional units. Each unit comprises one share of Class A common stock and a half warrant for stock purchase at $11.50 per share. The company's focus is on mergers and acquisitions in the software sector, particularly targeting enterprise verticals.

Positive

• Successful closure of IPO raising $200 million.
• Strong focus on acquiring software companies, potentially leading to growth.
• The underwriters have an option to purchase additional units, indicating confidence in the offering.

Negative

• No immediate financial metrics demonstrated in the PR related to expected use of funds.
• The company operates as a blank check entity with no identified acquisition target, posing risks for investors.

LAS VEGAS, Aug. 02, 2021 (GLOBE NEWSWIRE) -- Software Acquisition Group Inc. III (NASDAQ: SWAGU) (the “Company”) announced today that it closed its initial public offering of 20,000,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $200,000,000. The Company granted the underwriters in the initial public offering, a 45-day option to purchase up to 3,000,000 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 “SWAGU” on July 29, 2021. 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 “SWAG” and “SWAGW”, 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.

Jefferies LLC 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, $203,000,000 (or $10.15 per unit sold in the public offering) was placed in the Company’s trust account. An audited balance sheet of the Company as of August 2, 2021 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 preliminary prospectus relating to the offering and final prospectus, when available, may be obtained from Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone: 877-821-7388 or by email: Prospectus_Department@Jefferies.com.

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission (“SEC”) on July 28, 2021. 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. III
jon@softwareaqn.com

FAQ

What is the transaction value of Software Acquisition Group Inc. III's IPO?

The IPO raised $200 million by selling 20 million units at $10.00 per unit.

When did the units of SWAGU begin trading?

The units commenced trading on July 29, 2021.

What is included in each unit of SWAGU?

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

What is the purpose of Software Acquisition Group Inc. III?

The company aims to effect a merger or acquisition with software companies, focusing on enterprise verticals.