Apex Technology Acquisition Corporation (APXT) is a blank check company. It was founded in 2019 with headquarters in Burlingame, California, United States. The parent organization of Apex Technology Acquisition Corporation is Apex Technology Sponsor Llc. It is a public company listed in the NASDAQ capital market under the symbols “APXT.” The company is led by Jeff Epstein, the Chief Executive Officer and Chief Financial Officer of Apex Technology Holdings, Inc. and Co-Chief Executive Officer, Chief Financial Officer and secretary at Apex Technology Acquisition Corporation. He was the former Chief Executive Officer at Oracle. Brad Koenig, who was prior the head of Goldman Sachs Group Inc., which is a leading investments and securities management andglobal investment banking firm, is also serving as the Co-Chief Executive Officer of the company.The heads’ joint experience comprises of more than one hundred techmergers and Initial Public Offerings (IPOs) including firms like Twilio, Microsoft and Oracle. The company serves customers in the United States of America.
As mentioned above, being a blank check company, also known as special purpose acquisition corporation (SPAC), Apex has indicated its business to engage in a merger or acquisition with an unidentified company, entity or a person. The company deals in asset acquisition, stock purchase, capital stock exchange, asset management, share reconstruction, reorganization and other financial services or similar business combination with one or more businesses in the software and internet technology industries. It seeks to form a business combination with leading software, internet or business services company with an enterprise valuation of $1 to $5 billion.
As per the company’s prospectus, they may pursue an initial business combination target in any business or industry; they intend to focus their search on companies in the software and internet technology industries.
MERGER WITH AvePoint:
According to Investors observer and the finance assignment statements by nursing assignment writing service UK, Apex Technology Acquisition Corp (APXT) is around the top of the financial services sector.It has announced to participate in two upcoming investor events, the Jefferies Software Virtual Bus Tour on January 14 and in the Northland Securities SPAC Investor Conference on January20, with Ave point known to be the biggest wide-reaching data management solution provider for the Microsoft cloud.AvePoint has decided to go public by merging witha special acquisition company (SPAC), Apex Technology Acquisition Corporation, which is traded publicly. The value of this merger deal would be around $2billion. A reverse merger will result in AvePoint becoming a public company traded on the NASDAQ capital market.
ABOUT THE DEAL:
It is said to be one of the rare deals as it will also pay cash to existing shareholders of AvePoint. They will be receiving $257 million in a cash payout. However, the existing SPAC shareholders will only control 17.6% of the combined company, which is lower than normal. The merger finalizes in the first quarter of the year 2021. After completingthe planned transaction, the currentAvePoint stockholders will expectedly own about 72 percent of the merged company, expectedly having approximately $252 million of cash on the balance sheet keeping in account that no redemptions are made by Apex’s public stockholders.
The name of the combined company would be AvePoint, led by the Co-founder and Chief Executive of AvePoint, Dr. Tianyi Jiang. The co-founder of AvePoint, Kai Gong,will be the Executive Chairman. Mr. Jeff Epstein will also be a part of the board of directors of AvePointas a director while Mr. Brad Koenig will be an observer in the Board of Directors of AvePoint. As per the reports, the company’s stocks will remain registered in NASDAQ exchange, with a new symbol “AVPT”. According to AvePoint, they expect to earn approximately $148 million in revenue for the year ending December 31, 2020. This would be approximately 26% more than that of 2019 revenue.
Sixth Street, a global investment firm, will continue as the shareholder of the combined firm. The company had made a $200 million growth equity investment in AvePoint in 2019.
AboutAvePoint:
AvePoint, a company founded in 2001, is the largest independent software vendor of software as a service (SaaS) solutions to govern, manage, protect, and migrate data. The company’s headquarter lies in Jersey City, New Jersey, United States with various offices in the United Kingdom, China, France, Germany, Singapore, Japan, Australia, Canada, South Africa and Switzerland. Before the announcement of the merger with Apex Technology Acquisition Corporation, it was a privately held company.AvePoint is one of the five software companies, out of more than two hundred companies, with a growth rate of about 30% and annual revenue of around $150 million. It has also won the award of the Global Microsoft Partner of the year, five times.
As defined by Ave point, the merger with Apex Technology Acquisition Corporation is good news for AvePoint and their customers. They aim to use this merger and the resulting infusion of capital to scale their innovation to deliver even more value and solutions across Microsoft 365 and other digital collaboration platforms. They have planned to expand their geographic footprints to increase their channel presence and support for managed service providers. Declaring the timing of the deal of merger to be “right,” they mentioned that COVID-19 had had a positive impact on the demand of the products and services of the company. The factors that fueled the company’s businessbefore the pandemic were explosive data growth, increasing data regulations, hyper-growth of Microsoft teams and shifts to the cloud.
IMPACT ON APEX TECHNOLOGY ACQUISITION CORPORATION:
The news of a merger with AvePoint has pushed up the APXT stock in the market. The stock price of Apex Technology Acquisition Corporation (listed on NASDAQ exchange as APXT) raised approximately 7.22%, and it was trading up 20.11% on Friday over the past week.
The combined company will receive an investment from a group of institutional investors of $140 million participating in the transaction through a committed private investment “PIPE,”along with $352 million held in Apex’s trust account.
