Bakkt Holdings, Inc. (NYSE: BKKT) (the “Firm” or “Bakkt”), a digital asset platform that unlocks crypto and drives loyalty to create pleasant, linked experiences for a broad vary of shoppers, has signed a definitive settlement to amass Apex Crypto, LLC from Apex Fintech Options, Inc.
This acquisition is anticipated to considerably bolster Bakkt’s cryptocurrency product providing and broaden its footprint into extra consumer verticals together with fintechs, buying and selling app platforms, and neo-banks.
“We discovered a novel asset in Apex Crypto, which is able to broaden our crypto consumer base, present us with quicker pace to marketplace for new crypto capabilities and function a further avenue for continued gross sales to a crypto-savvy viewers by Apex Fintech Options,” stated Gavin Michael, CEO of Bakkt. “With the addition of this complementary enterprise, we consider we’re poised to be a crypto supplier of alternative for monetary establishments, fintechs, retailers or loyalty packages that wish to provide seamless crypto experiences to their prospects. It’s additionally anticipated to allow us to unlock extra revolutionary alternatives that enchantment to the following era of shoppers equivalent to crypto rewards and NFTs.”
Apex Crypto is a turnkey platform for built-in crypto buying and selling, developed to satisfy the rising wants of greater than 30 fintech corporations and their prospects throughout a quickly increasing sector. Apex Crypto helps shoppers with a sturdy resolution for execution, clearing, custody, value foundation and tax companies facilitating the supply of frictionless crypto investing in additional than 30 tokens.
Below the phrases of the transaction, Bakkt and Apex Fintech Options will enter right into a industrial settlement that memorializes the continued relationship and provision of Bakkt crypto options to Apex’s 220+ shoppers. As a part of the continuing collaboration, Apex Fintech Options could have the chance to deliver Bakkt’s main platform options to its shoppers.
“It’s our goal at Apex to allow frictionless investing for everybody and Bakkt’s staff and platform are an incredible complement to that,” stated William Capuzzi, CEO of Apex Fintech Options. “We stay up for working collectively to proceed to offer prospects a seamless crypto expertise and entry to an expanded resolution set. That is the start of an thrilling time of progress and innovation for each of our organizations.”
Launched in 2019, Apex Crypto was created to permit buyers to transition between buying and selling equities and cryptocurrency by providing environment friendly account opening and funding options. Moreover, the Apex Crypto platform handles the advanced regulatory and licensing obligations related to cryptocurrency investing whereas permitting its shoppers to concentrate on providing a holistic person expertise.
Transaction Highlights
– The transaction is anticipated to ship income diversification and synergies to Bakkt because it scales its choices
– Bakkt believes that Apex’s Crypto platform will speed up its product innovation and improvement, with complementary crypto options that can provide our mixed companions expanded choices and performance
– Bakkt and Apex Crypto’s joint capabilities are anticipated to create quicker pace to marketplace for extra superior crypto merchandise, together with staking, exterior transfers and NFTs
Transaction Particulars
Below the phrases of the settlement, Bakkt will purchase Apex Crypto for a most buy value of $200 million. Bakkt will initially pay $55 million in money on the closing of the deal, and as much as $45 million in Bakkt inventory relying on the achievement of economic targets by the acquired enterprise within the fourth quarter of 2022; as much as a further $100 million in Bakkt inventory and vendor notes could also be paid relying on the achievement of economic targets by the acquired enterprise by 2025.
The transaction is anticipated to shut within the first half of 2023 and is topic to required regulatory approvals.