The Cloud

Microsoft Cloud Provider AvePoint Going Public Via Apex Technology SPAC

AvePoint is estimating revenue to grow 26% year-over-year to $148 million for fiscal 2020.
Vincent RyanNovember 23, 2020

Leading Microsoft cloud partner AvePoint is set to go public with a SPAC deal announced Monday.

AvePoint will go public via Apex Technology Acquisition. The deal values the company at $2 billion.

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AvePoint co-founder and CEO Dr. Tiaryi Jiang and co-founder Kai Gong will remain with the company. AvePoint is expected to trade under the symbol AVPT when the deal is closed in the first quarter of 2021.

Apex Technology shareholders will own 17.6% of the new company.

AvePoint sells directly to large and mid-market enterprises. The company is the largest Microsoft 365 data management solutions provider. It has more than 7 million cloud users from Microsoft. The customer base includes around 25% of the Fortune 500 companies.

“The impact of COVID-19 and the growth of Microsoft’s cloud solutions, including Microsoft 365 and Microsoft Teams, have accelerated demands for our products. We have achieved eight quarters of impressive growth,” said AvePoint CEO Dr. Jiang.

Microsoft holds 13% share in the IaaS market, 11% in SaaS, and 28% of productivity and collaboration. In the last 12 months, Microsoft cloud revenue was $48.4 billion.

“We bridge the gap between what Microsoft cloud offers and what the enterprise requires,” AvePoint said in the release.

AvePoint believes it has an addressable market size of $33 billion by 2022.

AvePoint’s 7 million customers represent a 3% share of Microsoft’s 250 million 365 users. AvePoint believes it can get to 10% share and Microsoft will hit 500 million users in the future, good for 50 million AvePoint future customers.

Of 212 public software companies, AvePoint joins a select group that has revenue of $150 million in 2020, year-over-year revenue growth of 25% or more, and EBIT margins of 10% or more.

The five companies in the group are Atlassian, RingCentral, ServiceNow, ZoomInfo Technologies, and Zoom Video Communications. Each of the five companies in the select group is up more than 80% in 2020.

AvePoint is estimating revenue to grow 26% year-over-year to $148 million for fiscal 2020. The company is also forecasting revenue to hit $193 million and $257 million for fiscal 2021 and fiscal 2022, respectively.

Apex Technology Acquisition is led by former Oracle CFO Jeff Epstein and Brad Koenig, the former head of technology investment banking at Goldman Sachs.

Epstein helped Oracle complete more than 20 acquisitions, including the $8.5 billion purchase of BEA Systems and the $7.4 billion acquisition of Sun Microsystems.

Koenig was part of the team that brought Alphabet to market in a $1.7 billion IPO.

This story originally appeared on Benzinga.

© 2020 Benzinga does not provide investment advice. All rights reserved.

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