At the time of the most recent check, shares of Provident Acquisition Corp. (NASDAQ: PAQC) were up 25.91% to trade at $13.85 after the shell company announced the completion of a business combination agreement.
Who has PAQC merged with?
Provident Acquisition (PAQC) announced the completion of the previously publicized business combination (the “Business Combination”) between Provident Acquisition and Perfect Corp. (“Perfect”). On October 31, 2022, the New York Stock Exchange will begin trading the shares and warrants of the listed company that results from the business combination under the ticker codes “PERF” and “PERF WS,” respectively.
By achieving this important milestone, Perfect’s management made a commitment to continue the business development as a publicly traded company. By utilizing its access to the global capital market, Perfect intends to broaden its industry coverage from the beauty and fashion industries to tangential ones, enhance our cutting-edge AR and AI SaaS solutions and enable more businesses around the world to offer consumers revolutionary virtual product try-on experiences.
The collaboration with Perfect’s unmatched vision and leadership has propelled Provident Acquisition to the top of today’s fashion and beauty sectors. that Perfect is well-positioned to continue expanding its business and provide sustainable shareholder returns thanks to its cutting-edge AI and AR technologies and solid collaborations with the world’s largest beauty firms. As a newly-public business, PAQC is excited about the prospects that lay ahead and are looking forward to working with Perfect.
What’s in it for PAQC?
On October 25, 2022, Provident Acquisition’s shareholders held an extraordinary general meeting (the “EGM”) at which the business combination was authorized. After the Business Combination is complete, Perfect plans to concentrate on speeding up its international expansion, expanding its industry coverage beyond the beauty and fashion industries to tangential industries, and enhancing its cutting-edge AR and AI SaaS solutions, including product try-on and digital consultation solutions.
The investors in PAQC understood the value that Perfect adds to the merged company as well as the promising future prospects. In order to transform the beauty and fashion sectors, Perfect, a pioneer in AR and AI technologies, teamed with Provident Acquisition. The deal values PERFECT’s firm at around US$1.02 billion, in accordance with the provisions of the business combination agreement between Perfect and PAQC. Perfect anticipates receiving about US$119 million in gross profits from the Business Combination.
How will PAQC move forward?
Blue-chip investors including CHANEL, CyberLink, Shiseido, and Snap, as well as prominent financial investors, support the PIPE deal. Long-term institutional investors Ward Ferry Management and other investors, including an affiliate of Provident Acquisition (PAQC), agreed to the forward purchase agreements at the time of PAQC’s initial public offering. The proposed Commercial Combination’s cash proceeds will be applied to Perfect’s business operations, R&D, general corporate purposes, market expansion outside of the beauty and fashion industries, and worldwide deployment of its AR and AI SaaS solutions.