TPG Pace Tech Opportunities II, a blank check company formed by TPG Pace Group targeting the tech industry, filed on Monday with the SEC to raise up to $450 million in an initial public offering.
The Fort Worth, TX-based company plans to raise $450 million by offering 45 million units at $10. Unlike many SPACs, the company will not include warrants in the offering. The company may raise an additional $50 million at the closing of an acquisition pursuant to a forward purchase agreement with TPG, as well as an additional $100 million pursuant to forward purchase agreements with various third parties. At the proposed deal size, TPG Pace Tech Opportunities II would command a market value of $511 million.
The company is led by Chairman Karl Peterson, a Senior Partner of TPG and Managing Partner of TPG Pace Group, the firm’s effort to sponsor special purpose acquisition companies and other permanent capital solutions for companies; and President Greg Mrva, who previously was the CFO of StubHub and served as a Managing Director at Morgan Stanley prior to that. The company intends to capitalize management's ability to identify, acquire, and operate an attractive technology or technology-driven business that will be well positioned to thrive in the public markets business and that could benefit from a hands-on lead shareholder who can identify and implement improvements.
TPG's other SPACs include TPG Pace Solutions (TPGS) and TPG Pace Beneficial II (YTPG), which both filed concurrently with TPG Pace Tech Opportunities II; as well as TPG Pace Beneficial Finance (TPGY; +61% from $10 offer price), which is pending an acquisition of EVBox Group; TPG Pace Tech Opportunities (PACE; +3%), which is pending an acquisition of Nerdy; and TPG Pace Holdings, which completed its acquisition of Accel Entertainment (ACEL; +15%) in November 2019.
TPG Pace Tech Opportunities II was founded in 2021 and plans to list on the NYSE under the symbol TPGT. Deutsche Bank, J.P. Morgan and Goldman Sachs are the joint bookrunners on the deal.
