Cerberus Telecom Acquisition, a blank check company formed by Cerberus Capital Management, filed on Friday with the SEC to raise up to $400 million in an initial public offering.
The New York, NY-based company plans to raise $400 million by offering 40 million units at $10. Each unit consists of one share of common stock and one-fourth of a warrant, exercisable at $11.50. The company plans to raise $11 million in a concurrent private placement to its sponsor. At the proposed deal size, Cerberus Telecom Acquisition would command a market value of $511 million.
The company is led by Chairman Frank Bruno, who is Co-CEO of Cerberus Capital Management's global investment activities, and CEO Timothy Donahue, who previously served as CEO of Nextel Communications and helped facilitate the company's merger with Sprint. Cerberus Telecom Acquisition plans to leverage its management team's experience and target the information and communications technology (ICT) industry.
Cerberus Telecom Acquisition was founded in 2020 and plans to list on the NYSE under the symbol CTAC.U. The company filed confidentially on September 21, 2020. Morgan Stanley and Deutsche Bank are joint bookrunners on the deal.
