Home Fashion Industry Financial CyberLink Subsidiary Perfect Corp Prepares to List on Nasdaq with Merger

CyberLink Subsidiary Perfect Corp Prepares to List on Nasdaq with Merger


Perfect, a CyberLink subsidiary that uses AI SaaS and augmented reality (AR) for the beauty and fashion industry, will merge with Provident for a public listing on Nasdaq later this year with financial backing from CyberLink .

Perfect, a Taipei, Taiwan-based company which is a spin-off of multimedia and facial recognition company CyberLink, offers the SaaS and AR AI application for the beauty and fashion industry. The technology powers 3D face and hand modeling, AI skin diagnostics and simulations, AR-assisted video consultations, live product trial, and personalized facial attribute recommendations. Perfect started using CyberLink’s biometric technology even before the launch of its FaceMe facial recognition solution in Asia.

As of 2015, Perfect claims its enterprise solutions are used by 19 of the top 20 global beauty groups and over 400 beauty brands in over 80 countries. It further states that its consumer apps have also achieved more than 950 million downloads worldwide and enabled more than 10 billion virtual product trials per year.

The company plans to merge with Provident Acquisition Corp, a special purpose acquisition company (SPAC), in the third quarter of 2022 and fix a valuation of more than $1 billion. The combined company will be listed on the Nasdaq with the aim of accelerating Perfect’s global expansion, extending its industry coverage beyond fashion and beauty, and augmenting its AR and AI SaaS solutions such as product testing, facial diagnostics and digital consultation solutions.

A press release says the merger is expected to raise up to $335 million, including $50 million from a concurrent PIPE (private equity investment) transaction. The PIPE transaction would be anchored by investors such as Chanel and CyberLink.

Alice Chang, Founder and CEO of Perfect, said, “By partnering with Provident, we expect to not only gain access to public capital markets, but also attract more world-class investors, improve our governance of business, 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.

Since the announcement, CyberLink shares have risen from TWD$88.20 (US$3.10) in the open market on March 3 to TWD$105 ($3.70) on March 9, an increase of 19 %. CyberLink says it will own 36.3% of Perfect’s shares in the SPAC merger. The company expects an investment loss in Perfect due to an increase in financial liabilities with the merger, but expects its stake to be valued at US$366 million after Perfect’s Nasdaq listing, i.e. a return on investment multiplied by ten.

“Perfect Corp.’s global leadership in AR and AI technology, its proven track record of success working with the world’s top beauty brands, its strong revenue growth and expanding profit margins, and its attractive valuation make it a perfect fit for our combination business,” says Michael Aw, CEO of Provident.

The news of the merger accompanies the release of notes for a fourth quarter 2021 investor conference by CyberLink. The company forecasts the facial recognition market to reach $20.63 billion by 2030 and match the growth with its FaceMe facial biometrics engine. FaceMe will shift to vertical solutions such as retail and desktop apps, and spend more on R&D and field sales, CyberLink says

CyberLink also reported that its revenue for the year 2021 decreased by 3.9% to NT$1.58 billion (approximately $56 million).

Article topics

AI | augmented reality | biometrics | Cyber ​​Link | facial biometrics | metaverse | Perfect | SaaS | actions