Perfect Corp. has entered into a definitive agreement and plan of merger with Provident Acquisition Corp., a publicly traded special purpose acquisition company, that sets the enterprise value of Perfect Corp. at $1.02 billion.

WHO: Founded in 2015, Perfect is a leading provider of AI and AR SaaS solutions to the beauty and fashion industries. Perfect is transforming the consumer shopping experience with its 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. With 44 granted patents and other pending patent applications, Perfect believes that it is well positioned to empower beauty brands.

Within six years of inception, Perfect's enterprise solutions are now utilized by 95% of the world's top 20 global beauty groups and over 400 beauty brands in more than 80 countries. Perfect's consumer apps have also achieved over 950 million downloads globally and enabled over 10 billion virtual product try-ons annually.

WHY: The business combination will focus on accelerating Perfect's global expansion, extending industry coverage from beauty and fashion and augmenting the business’ AR and AI SaaS solutions.

IN THEIR OWN WORDS: Alice Chang, Founder and Chief Executive Officer of Perfect Corp., commented, "Perfect Corp. is transforming the beauty and fashion industries. 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."

Michael Aw, Chief Executive Officer of Provident, commented, "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. 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."

DETAILS:

• Perfect Corp. has entered into a definitive agreement and plan of merger with Provident Acquisition Corp., a publicly traded special purpose acquisition company.
• Under the terms of the business combination agreement between Perfect and Provident, the transaction sets Perfect's enterprise value at $1.02 billion.
• Upon the transaction closing, the combined company will be named Perfect Corp. and will be listed on the Nasdaq under the ticker symbol "PERF".
• The business combination is expected to provide Perfect Corp. with up to $335 million in gross proceeds, including $50 million from a concurrent PIPE transaction, $55 million from the forward purchase agreements, and $230 million currently held in trust by Provident (subject to applicable shareholder redemption rights).
• The PIPE transaction is anchored by several investors including Chanel, CyberLink, Shiseido, and Snap, as well as reputable financial investors.
• Perfect is backed by strategic investors, including CyberLink, Snap Inc., Goldman Sachs Asset Management, Alibaba Group Holding Limited, Yuanta Asia Investment, and CCV.
• The transaction is expected to close in the third quarter of 2022.
• In January 2021, Perfect Corp. raised a Series C investment of $50 million led by Goldman Sachs, which brought total funding at that time to about $130 million.