To anyone looking for a great play that's been quietly flying under the radar, let me introduce you to one of the best SPACs this year that's barely being talked about.
Apex Technologies / AvePoint Inc.
In November of 2020 AvePoint, the largest Microsoft 365 Data Management Solutions Provider announced a $2B merger with Apex Technologies. The deal is expected to close this quarter and AvePoint will begin trading under the new ticker AVPT.
Why is this one of the most undervalued SPACs right now?
1.) All Star Leadership
Both Apex and AvePoint boast great leadership teams. At Apex, Jeff Epstein (lol), serves as the co-CEO and CFO. Jeff has held board/executive positions at companies such as Oracle, Twilio, Nielsen, Booking Holdings among others. The other co-CEO, Brad Koenig has served as the Global Head of Technology Investment Banking at Goldman Sachs for 15+ years and has served clients such as Dell, eBay, Microsoft, SAP, Veritas, Oracle in advisory capacities. Both Jeff and Brad will join the board of AvePoint once the merger goes through.
The current CEO of AvePoint Tianyi Jang, who's 23 years in the industry include positions at Deutsche, Lehman Brothers, and Citadel will remain as the CEO. The rest of the executive team boast past positions at companies such as Deloitte, Johnson & Johnson, Verizon, Merril Lynch and many others.
2.) Total Addressable Market
We all know how huge cloud computing is and will continue to be through the future. This is no new news. AvePoint estimates their TAM to grow to over $33B by 2022. As a strategic cloud partner of Microsoft and a 5x Global Partner of the Year Recipient, they're very well positioned to grow along side Microsoft and the cloud computing space as a whole. This growth is only being accelerated by the pandemic.
https://www.pwc.com/us/en/industries/tmt/library/covid19-cloud-infrastructure.html
This partnership also allows a large competitive advantage as AvePoint offers the only full suite of SaaS solutions to migrate, manage, and secure data in Microsoft 365. Within the 7mm cloud users, previously mentioned there's some blockbuster Fortune 500 companies relying on AvePoint's technology everyday.
3.) Financials and Growth
Full Year Total Revenue for 2020 closed somewhere between $148M and $151M, up 29% year over Year. Cash, Cash Equivalents, and Short Term Investments total approximately $70M as of December 30, 2020 with a ~14% EBIT margin. The company also remains completely debt-free.
With an additional $252mm in cash on its balance sheet from the transaction, there will be plenty of room to grow. Some of the avenues AvePoint plans attacking include; selling more to existing customers, increasing SMB footprint, capturing a larger share of the Microsoft Cloud Customer Base (currently only 3% with no meaningful competition in the space), and expanding target industry focus and international targets.
Been holding 200 shares since late November and am shocked this merger isn't getting more attention. In the year of the SPAC, this one stands out as one of the best. I see at as a great simultaneous growth and value play and wanted to share. Cheers.
Additional Financials:
Main Sources:
https://www.sec.gov/cgi-bin/browse-edgar?CIK=1777921&owner=exclude
Submitted February 11, 2021 at 10:23PM by flynick https://ift.tt/2ZbyeFG
