- General
- November 23, 2020
- 3 minutes read
AvePoint Seals SPAC Merger Deal
AvePoint, a software vendor of SaaS solutions for the Microsoft cloud, has struck a deal to go public by merging…
AvePoint, a software vendor of SaaS solutions for the Microsoft cloud, has struck a deal to go public by merging with Apex Technology Acquisition Corp, a special-purpose acquisition company (SPAC). The deal will hand over nearly $500 million in cash to AvePoint, split into $352 million raised by Apex in its debut and an additional $140 million in equity committed by new investors.
The merger will give AvePoint an initial market value of $2 billion, representing a 13.5x multiple over the company’s projected 2020 revenue of $148 million which, in turn, is a 26% increase from its 2019 revenue.
AvePoint’s merger will score a significant exit for the private equity firm Sixth Street Partners which invested $200 million into AvePoint last year.
AvePoint was founded back in 2001 and is one of Microsoft’s major cloud partners. The New Jersey-based company bills itself as the largest provider of Data Management Solutions on the Microsoft Office 365 software suite. Apart from Microsoft, AvePoint’s software products are also available on more than 100 cloud marketplaces globally.
Apex Technology Acquisition Corp, the SPAC merging with AvePoint, was launched by Jeff Epstein, a former CFO of Oracle, and Brad Koenig, the former head of Goldman Sachs’ global technology investment banking team. It raised $350 million from investors in its public offering in September last year.
Upon closing of the merger, AvePoint’s current Chief Executive Tianyi Jiang will continue to lead the company. The merger will see AvePoint become publicly-traded on the Nasdaq Stock Exchange.
