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Dive Brief:

  • Perfect Corp. has entered into an agreement to merge with ProjectNY and become a privately held company, the beauty technology company announced Friday. ProjectNY is a company owned by Perfect Corp.’s CEO and founder, Alice Chang.
  • As part of the deal, shareholders are being offered $2 per share without interest. The company is funding the merger through its available cash and funds from its subsidiaries.
  • The merger is expected to be completed during the fourth quarter of 2026, pending approval by two-thirds of shareholders, and is subject to customary closing conditions.

Dive Insight:

Over a decade after its founding and four years after going public, Perfect Corp. is going private.

In March, the company received a nonbinding proposal letter from Chang and CyberLink International Technology Corp. to take the company private for $1.95 in cash per share. Later that month, Perfect Corp. formed a special committee to consider the proposal.

With a unanimous recommendation from the special committee, the board of directors approved the merger agreement, the plan of merger and the transactions needed to take the company private. The special committee consulted with its own financial and legal advisers to negotiate the terms of the agreement, per the release.

In Q1, Perfect Corp’s total revenue jumped 12% year over year to nearly $18 million, and its gross profit rose 17.8% from a year prior to $14.7 million. The company’s first-quarter net income was $2.4 million, up nearly 3% year over year.

“We are seeing continued demand for generative AI and agentic AI solutions and intend to continue to focus toward developing products and services in this area,” Chang said in a statement alongside Q1 earnings. “We remain committed to evolving our technology capabilities and expanding our offerings to address opportunities across both segments.”

Indeed, the company has collaborated with fashion and beauty brands over the years to bolster their AR and AI services. In 2023, Perfect Corp. partnered with travel retailer Dufry to launch AR makeup try-on technology in airports globally, featuring products from Kylie Cosmetics, Benefit and Huda Beauty. The following year, the company introduced its AI Skin Analysis technology within Face Haus facial bars, enabling estheticians to assess customers’ skin types and recommend products.

Beyond expanding the reach of its beauty and skin care tech, Perfect Corp. acquired a subsidiary to enter into luxury fashion. In 2024, the company purchased virtual try-on tech provider Wannaby from Farfetch for an undisclosed sum. Using Wannaby’s technology, customers can virtually try on apparel, bags and shoes.