Shares of Special Purpose Acquisition Company (SPAC), Apex Technology (NASDAQ: APXT) are up over 11% premarket on Monday after it was announced that the company has entered into a merger agreement with AvePoint.
AvePoint is the largest data management solutions provider for Microsoft Cloud, and the deal will see the combined company named AvePoint and remain listed on the Nasdaq under the ticker symbol AVPT.
“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. And we were growing prior to COVID-19 as well. We have achieved eight quarters of impressive growth,” said AvePoint CEO Tianyi Jiang.
“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,” Jiang continued.
AvePoint said the combined company will benefit from $140 million in proceeds for a group of institutional investors involved in the transaction with the valuing the combined company at approximately $2 billion.
The merger is expected to complete in the first quarter of 2021, and AvePoint shareholders will own around 72% of the company.
SPAC mergers have risen sharply in 2020. According to Bloomberg, by the end of September, there were 109 deals compared with 54 during the whole of 2019 as companies see the benefits over a traditional IPO.
Apex Technology shares are trading at $11.30 after at 11.33% rally premarket.