Imaging fashion app leader Perfect Corp. to list on NASDAQ
Perfect Corp. has entered into a definitive agreement and plan of merger with Provident Acquisition Corp., a publicly-traded special purpose company, that sets the enterprise value of Perfect Corp. at US$1.02 billion. The business combination is expected to provide Perfect Corp. with up to US$335 million in gross proceeds, including US$50 million from concurrent PIPE transaction, US$55 million from the forward purchase agreements, and US$230 million currently held in trust by Provident (subject to applicable shareholder redemption rights), the company said. The transaction is expected to close in the third quarter of 2022 and Perfect is expected to be listed on the Nasdaq under the new ticker symbol “PERF”.
The PIPE transaction is anchored by several investors including CHANEL, CyberLink, Shiseido and Snap, as well as other financial investors. The forward purchase agreements were entered into at the time of Provident’s initial public offering and committed by long-term institutional investors Ward Ferry Management and other investors including an affiliate of Provident.
Use of proceeds includes enhancing Perfect Corp.’s AR and AI SaaS solutions, extending its market reach beyond beauty and fashion industries, and accelerating its global expansion, the company said.
“Perfect Corp. is transforming the beauty and fashion industries,” said Alice Chang, founder and CEO, Perfect. “We democratize the shopping experience for consumers and brands with our leading AR and AI SaaS solutions. At the same time, we empower brands large and small to provide their customers with an enjoyable, convenient, and personalized omnichannel shopping experience through innovative technologies. Current consumer trends, such as increasing penetration of omnichannel consumption, hygiene awareness, and focus on ESG, provide us with favorable tailwinds to accelerate growth and adoption of our services. By combining with Provident, we expect to not only attain access to the public capital markets, but also attract more world-class investors, enhance our corporate governance, expand our market reach, increase development in AI & AR technology and explore white space, such as adjacent fashion verticals and metaverse applications of our technologies.”
“Perfect Corp.’s global leadership in AR and AI technology, its proven track record of success in working with the world’s leading beauty brands, its high revenue growth and expanding profit margins, and its attractive valuation make it a perfect fit for our business combination,” said Michael Aw, CEO, Provident. “Leveraging our team’s expertise in founding and building businesses to large scales and our extensive network in the beauty industry, we are committed to working together with Perfect’s highly experienced management team to expand its market reach, develop new verticals, extend market leadership, and deliver superior returns for its shareholders.”
Founded in 2015, Perfect is a provider of AI and AR SaaS solutions to the beauty and fashion industries. Perfect offers sophisticated SaaS solutions including 3D facial and hand modeling, AI skin diagnostics and simulations, AR-empowered video consultations, live product try-on, and personalized facial attribute recommendations. It serves a wide array of beauty and fashion segments including cosmetics, skincare, hair coloring, fashion accessories, and more.
Perfect is backed by strategic investors, including CyberLink; Snap Inc.; Goldman Sachs Asset Management; Alibaba Group Holding Ltd., a technology company rooted in commerce; Yuanta Asia Investment (Hong Kong), a Hong Kong based private equity management company focusing on high-tech development investments; and CCV, an investment firm focused on making early-stage and growth-stage investment in the TMT area.