AvePoint to SPAC

AvePoint
AvePoint

Microsoft 365 SaaS vendor AvePoint announced that they would go public via a merger with SPAC Apex Technology Acquisition Corp. AvePoint is interesting because with 7 million users, it’s the largest data management solutions provider for the Microsoft cloud. The players are also highly regarded.

Apex is run by former Oracle CFO Jeff Epstein and former Goldman Sachs head of tech investment Brad Koenig. Meanwhile, AvePoint’s CEO Tianji Jiang is leading the company to an expected $148 million in revenue or increase of 26% in 2020 vs 2019 in an estimated $33 billion addressable market.

AvePoint has been around for 20 years, making their name in Sharepoint migration services. In a press release, Jiang said “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..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.”

Our Take:

On news, $APXT popped but the deal isn’t expected to close until the first quarter of the year, giving you time to jump in, certainly on any fade. On close, $APXT will switch over to $AVPT. SPACs are saturating the scene and not all deals are quality, but we like this one. Not only is AvePoint an established name and leading SaaS, but the SPAC, Apex, is also led by well-known executives with strong track records.

Disclosure: As of this writing, the author has a small but growing position in $APXT.

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