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SPAC Software Acquisition Group III files for a $200 million IPO

February 18, 2021

Software Acquisition Group III, the third blank check company led by former Ooyala officers targeting a software company, filed on Thursday with the SEC to raise up to $200 million in an initial public offering.

The Las Vegas, NV-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50. At the proposed deal size, Software Acquisition Group III would command a market value of $250 million.

The company is led by CEO, CFO, and Chairman Jonathan Huberman, who previously served as CEO of Ooyala (acquired in 2019), Syncplicity, and Tiburon; and VP of Acquisitions Mike Nikzad, who previously served as COO and President of Ooyala and COO of NewNet Communication Technologies and Syncplicity. The company plans to target software companies, especially those targeting enterprise vertical sectors owned by private equity and venture capital firms as well as corporate carve-outs, with enterprise values of $600 million or greater.

The pair's previous SPACs include September 2020 IPO Software Acquisition Group II (SAII; +14% from $10 offer price), which has a pending merger agreement with vehicle data platform Otonomo, and November 2019 IPO Software Acquisition Group, which merged with subscription documentary streaming service CuriosityStream (CURI; +128%) in October 2020.

Software Acquisition Group III was founded in 2021 and plans to list on the Nasdaq under the symbol SWAGU. Jefferies is the sole bookrunner on the deal.