Augmented Reality Beauty Industry Leader Perfect Corp. To Merge With Provident

Perfect Corp. is merging with Provident Acquisition Corp. Under terms of the deal, Perfect Corp. is valued at $1.02 billion. Perfect Corp. creates augmented reality (“AR”) and artificial intelligence (“AI”) Software-as-a-Service (“SaaS”) solutions to beauty and fashion industries. The combined company will focus on accelerating Perfect’s global expansion, extending Perfect’s industry coverage from beauty and fashion to tangential sectors, and augmenting Perfect’s AR and AI SaaS solutions, including product try-on, facial diagnostics, and digital consultation solutions. Upon the transaction closing, expected in the third quarter, 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 with approximately $335 million in gross proceeds, including $50 million from concurrent private-investment-in-public-equity (PIPE) transaction, US$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 backed by investors including Chanel, CyberLink, Shiseido and Snap. Cash proceeds from the proposed transaction will be used to support Perfect’s global expansion of its AR and AI SaaS solutions, market expansion beyond beauty and fashion industries, business operations, research and development, and general corporate purposes.

“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 technologies,” said Alice Chang, innovative founder and chief executive officer of Perfect. “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.”

Founded in 2015, Perfect’s SaaS solutions include 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 color and fashion accessories.

With 44 granted patents and other pending patent applications, Perfect maintains it is well-positioned to empower beauty brands. Within six years of inception, Perfect’s enterprise solutions are 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.

Perfect is also partnering with internet platforms to utilize its AR & AI technology-empowered solution, including Snap Inc.’s Snapchat and Alibaba’s Taobao and Tmall Beauty. Through those strategic partnerships, Perfect provides beauty brands with access to one-stop beauty AR solutions that enable them to attract, engage, and retain consumers on the world’s highly trafficked Internet platforms.

With its technology leadership and omnichannel reach, Perfect believes that it is well-positioned to expand beyond beauty and fashion. Perfect has already begun offering AR and AI SaaS solutions related to eyewear, nail design, watches, jewelries and accessories. Perfect aims to become the AR and AI powerhouse partner for brands.

According to Provident CEO Michael Aw, 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.

“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,” he said.

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