TRG | The Bottom Line – 12/18

2020 will prove to be a record-breaking year for SPAC IPOs, upending the traditional IPO market. TRG over the past 12 months picked up coverage of two SPACs, APi Group (APG) and Atlas Technical Services (ATCX), companies that capitalize on outsourced labor trend for mission-critical testing, inspection and related services for the infrastructure and commercial construction end markets. APG and ATCX should see additional tailwinds for services in a post-COVID world with increase regulation/space reconfiguration in public spaces. Regulatory mandated service and inspection work drives APG and ATCX’s recurring revenues, and with increased regulation, so too should more opportunities for both companies. We had the opportunity to catch up with APG’s CEO this past week, focusing on drivers for increased 2020 guidance, its recently announced $100MM buy-back program, and the potential impact of a Biden administration to its business service offerings. Also check out what we had to say about APG and ATCX on CNBC this past week (link to segment).