Last week, the companies announced that the SEC gave the green light to the proposed merger. The next step is asking for shareholders’ approval, which will be done in a general meeting on June 30. If approved, AvePoint will merge with SPAC APXT.
The combined company will be listed on Nasdaq under the ticker symbols “AVPT” and “AVPTW,” respectively.
APXT stock popped 30 percent after the merger announcement.
The APXT merger with AvePoint was announced back in November. APXT stock popped almost 30 percent to trade at over $15 per share on the news of the possible merger. The shares continued to climb until February. As of June 21, the shares were trading at just over $11.
AvePoint is a leading data management solutions provider in the Microsoft cloud. Founded in 2001, the company has grown to serve the largest SaaS (software-as-a-service) userbase in the Microsoft 365 ecosystem. AvePoint solutions are used by more than 7 million in over 100 cloud marketplaces around the world.
AvePoint reported a 19 percent increase in revenue.
In May, AvePoint released its financial results for the first quarter of 2021, which showed total revenue of $38.8 million—a 19 percent increase YoY. Because of the strong first-quarter numbers, the company increased its expected 2021 revenue to $194 million.
“The impact of COVID-19 and the growth of Microsoft’s cloud solutions, including Microsoft 365 and Microsoft Teams, have accelerated demand for our products. We have achieved eight quarters of impressive growth. We have positive free cash flow and are in line with the key ‘Rule of 40’ SaaS industry growth metric,” said Dr. Tianyi Jiang, AvePoint’s co-founder and CEO, in a company statement. “Going public now gives us the ability to meet this demand and scale up faster across product innovation, channel marketing, international markets, and customer success initiatives.”
AvePoint is one of only five out of 200 public cloud companies with 2020 estimated revenue in the $150 million range, 2020 estimated YoY growth above 25 percent, and 2020 estimated EBIT margin over 10 percent, APXT co-founder Jeff Epstein said in a company statement about the merger.
“We are thrilled to partner with AvePoint to help thousands of customers protect and manage their Microsoft cloud investments; Microsoft cloud is sweeping through the world’s enterprises. AvePoint is well-positioned to take advantage of this,” said Epstein.
APXT went public in 2019 through an IPO that raised about $352 million. The SPAC was focused on merging with a software and internet technology company. It’s led by Epstein, the former Oracle CFO, and Brad Koenig, formerly at Goldman Sachs.
After the merger is complete, the combined company will have a valuation of about $2 billion. It will also receive $149 million in proceeds from a group of institutional investors participating in the transaction through a committed private investment (“PIPE”).
AvePoint shareholders will reportedly own 72 percent of the combined company.