Jersey City software firm going public through $2B reverse merger

Jersey City-based Software-as-a-Service firm AvePoint Inc. is going public through a merger with California-based Apex Technology Acquisition Corp. The initial public merger could be worth up to $2 billion, the company said.

AvePoint specializes in data management solutions for the Microsoft cloud, while Apex is a publicly traded special purpose acquisition company.

After the close of the merger, the combined company will be known as AvePoint, and will take Apex’s place on the Nasdaq Stock Market under the ticker, “AVPT.”

AvePoint co-founder and CEO Tianyi “TJ” Jiang will lead the company, while co-founder Kai Gong will serve as executive chairman.

AvePoint said it expects to generate approximately $148 million in total revenue for 2020, up 26% from 2019 numbers.

“AvePoint provides critical data management solutions that enable organizations to make their digital collaboration systems more productive, secure and compliant,” Jiang said in a prepared statement. “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.”

Apex is led by former Oracle and Goldman Sachs executives Jeff Epstein and Brad Koenig. Epstein will become an AvePoint director, while Koenig will join the board as an observer.

Both boards have approved the transaction, which is expected to close in the first quarter, subject to customary approvals and conditions.

Evercore Group LLC is acting as financial adviser to AvePoint, while Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Evercore and Cowen Inc. are acting as capital markets advisers. Cooley LLP is acting as AvePoint’s legal counsel. William Blair & Co. is acting as financial adviser to Apex. Cantor Fitzgerald L.P. is acting as capital markets adviser to Apex, while Goldman Sachs, Citi and Evercore are acting as private placement agents. Latham & Watkins LLP is acting as Apex’s legal counsel. Goodwin Procter LLP is legal counsel to the private placement agents.