Software Firm Perfect to Go Public Through $1 Billion SPAC Deal

(Bloomberg) -- Perfect Corp., an Asian startup that makes software for the beauty and fashion industries, agreed a deal to go public by merging with U.S.-listed blank-check company Provident Acquisition Corp.

The transaction gives the business an enterprise value of about $1 billion, according to a statement confirming an earlier Bloomberg News report. The combined company plans to use the funds from the deal to enhance its augmented reality and artificial intelligence solutions, extend its market reach beyond beauty and fashion and to accelerate its global expansion.

Perfect, based in Taipei, is expected to receive as much as $335 million in gross proceeds from the combination with the special purpose acquisition company, the statement showed. The figure includes $55 million from forward purchase agreements, $230 million held in trust by Provident, subject to shareholder redemptions, and $50 million from a private investment in public equity, or PIPE, whose investors include Chanel, CyberLink Corp., Shiseido Co. and Snap Inc.

“This deal will serve as a launchpad for further global expansion,” Perfect's Chief Executive Officer and Founder Alice Chang said in an interview.

“We see great opportunities to diversify and expand into areas such as accessories, apparel, personal care and even video conferences,” Chang said. The funding will also allow the company to hire new talent and consider acquisitions to accelerate growth, she added.

Perfect is a software-as-a-service AI and AR firm providing tech solutions for beauty and fashion companies globally. The startup raised $50 million in a series C funding round last year led by Goldman Sachs Group Inc. It has more than 400 global brand partners, including the social media firms Meta Platforms Inc. and Snap, and cosmetics giant Estee Lauder Cos.

The SPAC is led by Winato Kartono and Michael Aw, two key executives at Provident Group, an investment fund targeting Southeast Asian startups. Some of its high-profile investments include Indonesia's ride-hailing giant Gojek (now GoTo Group), online travel company Traveloka and Thailand-based online fashion retailer Pomelo.

Provident raised $230 million in a U.S. initial public offering last year. The blank-check firm said at the time it would pursue a business combination with an Asian technology company.

Goldman Sachs advised Perfect on the deal, while Barclays Plc served as M&A adviser to Provident, according to the statement. Citigroup Inc. and Barclays served as co-placement agents and co-capital markets advisers on the PIPE, the statement showed.

The transaction is expected to close in the third quarter of 2022, according to the statement. The shares are expected to trade on the Nasdaq under the symbol PERF.