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AvePoint to Go Public via $2 Billion Merger with Apex Technology

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AvePoint’s business has gained from a spike in adoption of Microsoft Cloud with more users moving to work virtually during the COVID-19 pandemic.

AvePoint Inc, a cloud data management firm that is backed by Sixth Street investment firm, is scheduled to go public. The move by AvePoint will involve a merger with blank-check firm Apex Technology Acquisition Corporation in a deal that is estimated to be worth $2 billion.

On the back of that announcement, Apex shares gained over 2% on November 23. AvePoint is recognized as the biggest data management solutions provider for the Microsoft cloud. When the deal goes through, the company is set to receive $140 million in proceeds from several institutional investors. It will then get listed on the Nasdaq using the ticker symbol “AVPT”.

Currently, AvePoint has almost seven million users and it operates from its headquarter in Jersey City, New Jersey. Official reports confirm that the company anticipates generating around $148 million in revenue this year, representing a 26% surge from one year ago.

Interestingly, AvePoint’s business has gained from a spike in adoption of Microsoft Cloud with more users moving to work virtually during the COVID-19 pandemic. The firm targets more small and medium-sized business companies to offer vertical solutions for enterprise content management on the cloud.

The co-CEO of Apex who is a former Oracle finance boss, Jeff Epstein, said that the Microsoft Cloud has created a tidal wave that is sweeping through the enterprise world.

Brad Koenig, an ex-Goldman Sachs head of technology investment banking, teamed up with Epstein to launch Blank-check firm Apex. It raised around $305 million in September 2019.

How This AvePoint and Apex Merger Works

By description, a special purpose acquisition company (SPAC) is a type of shell firm that uses initial public offering (IPO) proceeds to acquire another firm. The process takes at most two years to complete, which then takes the acquired company public. The investors do not know beforehand which company the SPAC plans to buy.

SPACs are becoming a popular IPO alternative for firms in 2020. The founder and CEO of AvePoint, Tianyi Jiang, mentioned that the firm had thought about a traditional IPO. However, he is convinced that the operational expertise from Apex may enable his 19-year-old firm to scale and expand faster into new market bases.

Koenig will join the AvePoint board as an observer while Epstein comes in as a director. Sixth Street spearheaded a $200 million growth equity AvePoint investment in 2019. It will continue as a shareholder in the combined firm. On their part, Goldman Sachs and Evercore Group will continue acting as AvePoint’s financial advisers. On the other hand, William Blair & Co is the current financial adviser to Apex.

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Wanguba Muriuki is a content crafter passionate about putting everything into writing. He is passionate about Blockchain and Traveling. He is also an experienced creative and technical writer. Everything and everyone has a story to tell. What better way to capture the real story than in words.



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Chinese City Plans Third Digital Yuan Pilot, Giving Away $3M in Prize Draw

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Lottery entrants can apply to win 200 digital yuan each.



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Microsoft, India’s Tanla Launch Encrypted Messaging Infrastructure Built With Blockchain

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.



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eToro Survey Finds Pensions and Endowments Are Finally Waking Up to Crypto

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Some of the largest and most risk-averse asset managers, including the likes of pension funds and endowments, are finally waking to crypto as an asset class, according to research released Thursday by trading platform eToro.

The eToro-commissioned market research, which quizzed 25 big institutions about investing in crypto, comes on the heels of news that BlackRock, the largest asset manager on the planet, is dipping its toe in bitcoin futures. 

“The respondents included endowments and pension funds,” said Spencer Mindlin, an analyst at Aite Group who carried out the research. “Funds and asset managers made up a proportion and some of the banks have asset management divisions and we spoke with a couple of folks there too.”

The overarching response from participants (a split between banks, brokers, fund managers and custodians) was that the crypto market has matured towards being institutional-grade over the previous two years, and the time was right to get involved.

“People are recognizing that where it took other markets, say, 10 years to mature, the crypto market has taken two years to reach levels of liquidity that we see in other asset classes,” Mindlin said in an interview. 

Regulated markets were the preferred execution venue of the respondents, followed by OTC market-makers and crypto spot exchanges. Unsurprisingly, the possible launch of regulated funds and ETF products were stated as guaranteeing institutional growth. 

The invitation to institutions looking at digital assets was further extended last week by news that the U.S. Office of the Comptroller of the Currency (OCC) had granted crypto custodian Anchorage a national trust charter to become a “digital bank.”  

Enlisting the help of digital asset custody specialists was also a priority, the research found, with the concept of so-called hot wallets (storage media connected to the internet for any significant length of time) generally viewed as inappropriate for the institutional market.



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