VIYI Algorithm, a Central Processing Algorithm Provider, Will Merge with Venus at a Valuation of $400 Million

September 18 03:33 2021

Hong Kong – Recently, TickerWin, the leading market research firm, has released a research report “VIYI Algorithm, a Central Processing Algorithm Provider, Will Merge with Venus at a Valuation of $400 Million”. In recent years, the popularity of SPAC continues to be hot. According to data from MyLink, the number of IPOS of SPAC in the United States was 34 and 46 respectively in 2017-2018. By the end of 2019, the number of SPAC listed companies in the US reached 59, raising a total of 13.6 billion US dollars, accounting for about 22% of the IPO volume in the US.

 

In 2020, the popularity of SPAC suddenly soared. The NUMBER of U.S. STOCK SPAC ipos reached 248, up 320% year on year, accounting for 55% of all IPO issuance, surpassing traditional IPO for the first time. In 2020, SPAC raised a total of $83 billion, accounting for 46.47% of the total VOLUME of IPOS in the US.

In terms of the choice of merger target, Nikola, which is highly sought after by the market and known as “Tesla of American truck industry”, gave up the traditional IPO and went public through SPAC merger and acquisition transaction in 2020. Fisker Inc., a maker of electric cars, has also said it is interested in a public offering through SPAC. In December 2020, in the cold winter of the valuation of the co-working industry, the company gave up IPO and chose SPAC to be listed successfully.

Since 2021, the popularity of SPAC has continued to rise. In the first quarter alone, the number of U.S. STOCK SPAC ipos reached 308, surpassing the total number of SPAC ipos in the whole of 2020, and the amount of capital raised was $99.6 billion.

Viyi Algorithm, Inc. (“VIYI Algo”), a Cayman Islands exempted company operating in China, announced that it would go public through a merger with Venus Acquisition Corporation, a special purpose Acquisition Company (SPAC). In connection with the transaction, Viyi Algorithm is valued at $400 million. Upon completion of the transaction, Venus will be renamed MicroAlgo Inc. The listing merger will be completed in the third quarter of 2021.

Public Information display, VIYI is dedicated to the development and application of bespoke central processing algorithms. VIYI provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both, thereby helping them to increase the number of customers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals. The range of VIYI’s services includes algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services. VIYI’s ability to efficiently deliver software and hardware optimization to customers through bespoke central processing algorithms serves as a driving force for VIYI’s long-term development.

Leading bespoke central processing algorithm service provider in China enjoying first-mover advantages and rapid revenue growth

VIYI ranks as one of the top five Chinese companies for central processing algorithm services. According to the CIC Report, as of 2020, VIYI has captured 5% of the market share for central processing algorithm services provided to internet advertisement and online gaming acceleration industries.

VIYI is ideally positioned to grow its revenue quickly as a leading central processing algorithm service provider in China. According to the CIC Report, VIYI is the only company amongst its competitors to provide central processing algorithm service solutions in both internet advertisement and online game acceleration industries. As a result, since 2017, VIYI’s revenue growth has been increasing on a cumulative basis, specifically, VIYI has achieved a year-on-year revenue growth rate of 31.9% in 2018, 52.6% in 2019, and 176.8% in 2020.

Revenues

VIYI derives its revenue primarily from (i) central processing algorithms services for the internet advertisement and internet gaming industries and (ii) intelligent chips and services, including software development.

VIYI’s revenue from central processing algorithms for the year ended December 31, 2020 was RMB 307.8 million, which represents an increase of RMB 196.6 million, or 176.8%, from VIYI’s total revenues of RMB 111.2 million for the year ended December 31, 2019. VIYI’s gross profit for the year ended December 31, 2020 was RMB 125.2 million, representing an increase of RMB 61.1 million, or 95.3%, from RMB 64.1 million for the year ended December 31, 2019. VIYI’s net income for the year ended December 31, 2020 was RMB 91.5 million, representing an increase of RMB 48.1 million, or 110.7%, from RMB 43.4 million for the year ended December 31, 2019.

Behind this frenzy, major funds, investment banks, private investors have participated in them. Plenty of SPacs have proved to be safe bets, so special-purpose buy-out companies (SPacs) will only get hotter.

The SPAC is set to hit a peak in U.S. stocks with the entry of billionaire investor and hedge fund Titan Bill Ackman. As the market changes in terms of investors and information sharing, it is not surprising that until recently accepted corporate finance and investment practices are coming under scrutiny. The IPO process, centred on investment behaviour, has worked well, but is outdated and alternatives are emerging. The SPAC’s popularity has not really waned, even as America’s securities markets, where it thrives, have suffered regulatory ramp-up. At the same time, Singapore, Hong Kong and other places of the capital market to explore the introduction of SPAC mechanism news.

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