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A SPAC to Keep an Eye on – Achronix’s Ace Merger Acquisition (NASDAQ: $ACEV)

ACE Convergence Acquisition Corp

Achronix captured revenues of over $100 MM in 2020, one of the most challenging years in recent history.

On top of the outstanding sales, the company has been able to sustain a gross margin of 79%, which is very high for most industries. Achronix focuses on creating special semiconductors with proprietary technology. The semiconductor industry is one of massive returns but intense competition. Recent news confirmed that ACE Convergence Acquisition Group is going public through a  merger with Achronix.

The sole purpose of special purpose acquisition companies (SPACs) is to find a viable company that is worth taking public. While the financials of Achronix have yet to be published, the merger is expected to be an interesting move. They are led by successful personnel in Chairman and CEO Behrooz Abdi and Dr. Sunni Siu.

Semiconductor Industry – High Margins & Extreme Competition

Achronix is making a lot of money selling its revolutionary semiconductors. The semiconductor market is known for having very high gross margins because companies usually own the technology they sell. Once an organization is able to develop its own product and an effective way of commercializing it, positive results could follow. 

This sector will continue expanding because of the quick evolution of technology in today’s society, meaning that businesses have to keep evolving. Demand for this type of business will also continue to increase as devices are being improved every year. The best part of the semiconductor industry is that it has applications in a wide range of companies. For example, Achronix’s FPGAs work on 5g infrastructure, cars, artificial intelligence, computers, and networks. These sectors are multi-billion dollar markets where constant change takes place, requiring highly complex components and requiring a certain level of reliability.

Taking the Company Public

The recent merger between ACE Convergence Acquisition Corp and Achronix will only help solidify its position as an emerging company with promising expectations. Achronix will receive over $300 MM in cash, and the merger is set to be valued at over $2.1 billion. The deal is expected to be completed by mid-2021 and will allow the company to go public. 

ACE Convergence Corp is a special purpose acquisition company with the sole purpose of acquiring businesses that have massive potential in order to enhance shareholder value. Following the initial public offering and the release of 10-Ks and other reports, investors will be able to appreciate the high earnings that this company has and will continue to possess as long as they continue to evolve, innovate, and distribute their products as they have until today.

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