Thoma Bravo Advantage, a blank check company formed by private equity firm Thoma Bravo, has filed a form with the SEC indicating that it plans to raise up to $900 million for an initial public offering (IPO) and an associated software company investment/acquisition.
Thoma Bravo Advantage (proposed NYSE symbol: $TBA) is a SPAC (special purpose acquisition company). A SPAC is designed to raise funds in an initial public offering (IPO) with the aim of acquiring a private company. That private company then becomes public as result of the merger, Reuters notes.
Updated January 15, 2021: Thoma Bravo Advantage shares will be listed on the New York Stock Exchange beginning January 15, 2021 under the symbol TBA, according to an update from the SPAC.
“Chicago-based Thoma Bravo’s usual approach to investing is to acquire controlling stakes in companies through leveraged buyouts instead of taking minority positions. By raising a blank-check company, it can buy a minority stake in a promising tech firm and help it go public, the source said.”
Fast forward to present day. The SEC filing indicates that Thoma Bravo Advantage is looking to acquire a privately held software company that has a strong management team, reasonable valuation, predictable recurring revenues and products that compete in a highly fragmented market segment.
Still, Thoma Bravo Advantage’s specific software target remains a point of discussion. The filing indicated:
“We have not selected any specific business combination target and we have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any business combination target with respect to an initial business combination with us.”
Here’s some more info about the pros and cons of SPAC investments, according to Protiviti, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit.
Originally posted December 5, 2020. Updated December 29, 2020 with new financial details.