Provident Acquisition $1.02 billion combination with Perfect
We are advising Provident Acquisition, a SPAC, on the transaction
Davis Polk is advising Provident Acquisition Corp. in connection with its business combination with Perfect Corp., that will result in Perfect becoming a public company with an enterprise value set at $1.02 billion. The transaction is expected to deliver up to $335 million of gross proceeds to the combined company, including $50 million from a concurrent PIPE transaction, anchored by CHANEL, CyberLink, Shiseido and Snap, $55 million from forward purchase agreements signed with Ward Ferry Management and other investors, including an affiliate of Provident Acquisition, and through the contribution of $230 million of cash held in Provident Acquisition’s trust account (subject to applicable shareholder redemption rights). The transaction, which is expected to close in the third quarter of 2022, is subject to approval by Provident Acquisition’s shareholders and other customary closing conditions.
Provident Acquisition is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition or other similar business combination with one or more businesses or entities and is sponsored by Provident Capital. Perfect is a global leader in providing AR and AI SaaS solutions to beauty and fashion industries.
The Davis Polk corporate team includes partners James C. Lin and Howard Zhang, counsel Sam Kelso and counsel – registered foreign lawyer Jie Zhang and registered foreign lawyers Xin (Sheen) Xu, Lucy Cai and Eva Xu. Partner Patrick E. Sigmon is providing tax advice. Partner Pritesh P. Shah is providing intellectual property advice. Members of the Davis Polk team are based in the Beijing, Hong Kong and New York offices.