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Communications SPAC Cerberus Telecom Acquisition II slashes deal size by 50% ahead of $250 million IPO

November 24, 2021

Cerberus Telecom Acquisition II, the second blank check company formed by Cerberus Capital Management targeting the ICT industry, lowered the proposed deal size for its upcoming IPO on Wednesday.

The New York, NY-based company now plans to raise $250 million by offering 25 million units at $10. The company had previously filed to offer 50 million units at the same price. Each unit now consists of one share of common stock and one-third of a warrant, exercisable at $11.50. Each unit previously contained one-fourth of a warrant. At the revised deal size, Cerberus Telecom Acquisition II will raise -50% less in proceeds than previously anticipated.

The company is led by CEO and Chairman Timothy Donahue, who previously served as CEO of Nextel Communications and helped facilitate the company's merger with Sprint. Management's previous SPAC, Cerberus Telecom Acquisition, completed its merger with IoT provider KORE Wireless (KORE; -26% from $10 offer price) this past October.

Cerberus Telecom Acquisition II plans to leverage its management team's experience and target businesses in the information and communications technology (ICT) industry that benefit from the transformational, long-term impacts of capital deployment in the 5G stack.

Cerberus Telecom Acquisition II was founded in 2021 and plans to list on the NYSE under the symbol CTII.U. Deutsche Bank and PJT Partners are the joint bookrunners on the deal.