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AvePoint’s business has gained from a spike in adoption of Microsoft Cloud with more users moving to work virtually during the COVID-19 pandemic.
AvePoint Inc, a cloud data management firm that is backed by Sixth Street investment firm, is scheduled to go public. The move by AvePoint will involve a merger with blank-check firm Apex Technology Acquisition Corporation in a deal that is estimated to be worth $2 billion.
On the back of that announcement, Apex shares gained over 2% on November 23. AvePoint is recognized as the biggest data management solutions provider for the Microsoft cloud. When the deal goes through, the company is set to receive $140 million in proceeds from several institutional investors. It will then get listed on the Nasdaq using the ticker symbol “AVPT”.
Currently, AvePoint has almost seven million users and it operates from its headquarter in Jersey City, New Jersey. Official reports confirm that the company anticipates generating around $148 million in revenue this year, representing a 26% surge from one year ago.
Interestingly, AvePoint’s business has gained from a spike in adoption of Microsoft Cloud with more users moving to work virtually during the COVID-19 pandemic. The firm targets more small and medium-sized business companies to offer vertical solutions for enterprise content management on the cloud.
The co-CEO of Apex who is a former Oracle finance boss, Jeff Epstein, said that the Microsoft Cloud has created a tidal wave that is sweeping through the enterprise world.
Brad Koenig, an ex-Goldman Sachs head of technology investment banking, teamed up with Epstein to launch Blank-check firm Apex. It raised around $305 million in September 2019.
How This AvePoint and Apex Merger Works
By description, a special purpose acquisition company (SPAC) is a type of shell firm that uses initial public offering (IPO) proceeds to acquire another firm. The process takes at most two years to complete, which then takes the acquired company public. The investors do not know beforehand which company the SPAC plans to buy.
SPACs are becoming a popular IPO alternative for firms in 2020. The founder and CEO of AvePoint, Tianyi Jiang, mentioned that the firm had thought about a traditional IPO. However, he is convinced that the operational expertise from Apex may enable his 19-year-old firm to scale and expand faster into new market bases.
Koenig will join the AvePoint board as an observer while Epstein comes in as a director. Sixth Street spearheaded a $200 million growth equity AvePoint investment in 2019. It will continue as a shareholder in the combined firm. On their part, Goldman Sachs and Evercore Group will continue acting as AvePoint’s financial advisers. On the other hand, William Blair & Co is the current financial adviser to Apex.