Digital Asset Company Bakkt To Purchase Apex Crypto
- As per the “definitive agreement” signed between Bakkt and Apex Fintech Solutions, the two will enter into a commercial deal that “memorializes the continued relationship and provision of Bakkt crypto solutions to Apex’s 220+ clients.”
- Bakkt will initially pay an amount of $55 million in cash at the closing of the deal along with $145 million in stock and seller notes after fulfilment of financial obligations.
- Goldman Sachs & Co. LLC is serving as the exclusive financial advisor for Bakkt while Sidley Austin LLP is acting as legal advisor to Apex Fintech Solutions.
Crypto-focused firm Bakkt, which went public amdist the crypto market rally in 2021, revealed that it is set to acquire crypto trading infrastructure firm Apex Crypto from Apex Fintech Solutions according to an announcement on Thursday. As per the “definitive agreement” signed between the two crypto-focused entities, Bakkt and Apex Fintech Solutions will enter into a commercial deal that “memorializes the continued relationship and provision of Bakkt crypto solutions to Apex’s 220+ clients.”
Furthermore, as per the statement, the deal “is expected to significantly bolster Bakkt’s cryptocurrency product offering and expand its footprint into additional client verticals, including fintechs, trading app platforms, and neo-banks.”
“We found a unique asset in Apex Crypto, which will expand our crypto client base, provide us with faster speed to market for new crypto capabilities and serve as an additional avenue for continued sales to a crypto-savvy audience through Apex Fintech Solutions,” said Gavin Michael, CEO of Bakkt.
Additionally, Bakkt, which is owned by Intercontinental Exchange (ICE), will initially pay an amount of $55 million in cash at the closing of the deal combined with $145 million in Bakkt stock and seller notes when some financial targets have been achived as per the deal. It is also crucial to note that the deal is expected to close in 2023 and as a result of the agreement, the crypto-focused Apex Crypto is set to offer revenue growth, cost saving and synergies for Bakkt. However, this is not the it.
As per the deal, Bakkt will also add additional amount (up to $100 million) in Bakkt stock and seller notes but the payement will heavily depend on the performance of the crypto firm and its financial track record by the year 2025.
“With the addition of this complementary business, we believe we are poised to be a crypto provider of choice for financial institutions, fintechs, merchants or loyalty programs that want to offer seamless crypto experiences to their customers. It’s also expected to enable us to unlock more innovative opportunities that appeal to the next generation of consumers such as crypto rewards and NFTs,” Michael added.
Additionally, the NYSE-listed company believes that Apex’s Crypto platform will accelerate its product innovation and development, along with providing complementary crypto solutions to expose the combined client base of the firm to expanded options and functionality.
The press statement also revealed that currently, Goldman Sachs & Co. LLC is serving as the exclusive financial advisor for the crypto company while Wilson Sonsini Goodrich and Rosati, PC, and Alston & Bird LLP are present on certain regulatory matters. Sidley Austin LLP is acting as legal advisor to Apex Fintech Solutions.