It’s looking like investors are starting to take notice of blank-check company Apex Technology Acquisition (NASDAQ:APXT) about a month after InvestorPlace highlighted its planned merger with AvePoint. APXT shares are up as much as 13% in early trading today after gaining more than 2% on Monday.
Readers may recall contributor Mark Hake’s take on the special purpose acquisition company (SPAC) in his Dec. 7 piece that focused on several unique proposed mergers. While he acknowledged that the deal is a straight software technology merger, it is “one of the rare deals that will also pay cash to existing shareholders of AvePoint. They will receive $257 million in a cash payout.” However, he noted that existing SPAC shareholders will still only control 17.6% of the combined company, which is lower than normal.
AvePoint says it is the largest data management solutions provider for the Microsoft (NASDAQ:MSFT) cloud. The deal will provide $252 million to the combined company’s coffers.
What’s Pushing Up APXT Stock Now?
It’s looking like plans to present the AvePoint story to investors has APXT stock gathering a bit of momentum.
Taking its Microsoft cloud data management story “on the road” in the virtual sense of things, Jeff Epstein, Co-CEO and CFO of Apex, and Dr. Tianyi Jiang, AvePoint’s co-founder and CEO, will participate in the Jefferies Software Virtual Bus Tour on Jan. 14 and in the Northland Securities SPAC Investor Conference on Jan. 20.
SPACs are clearly becoming more mainstream, especially for private companies that want to go public quickly. A recent Crunchbase article pointed out the very considerable advantages SPAC mergers have over IPOs for private companies.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.