Bakkt to Acquire Apex Crypto: What Investors Need to Know and Why It Matters – Bakkt Hldgs (NYSE:BKKT)
Digital Asset Platform Company Bakkt Holdings Inc BKKT announced the acquisition Apex Crypto of Apex Fintech Solutions for a total purchase price of $200 million.
The deal is expected to expand Bakkt’s cryptocurrency offerings and strengthen relationships with fintechs, trading platforms and neo-banks. It could also help the Atlanta-based company bring staking, external transfers, and non-fungible tokens (NFTs) to market faster.
Apex Crypto works with over 30 fintech companies and provides services such as execution, clearing, custody, cost basis and tax services. The startup, which launched in 2019, claims to support 44 cryptocurrencies for trading.
See also: Exclusive – What Bakkt CEO Gavin Michael Says Makes Fintech Bakkt Unique
“We have found a unique asset in Apex Crypto, which will expand our crypto customer base, provide us with faster speed to market for new crypto capabilities, and serve as an additional vehicle for continued sales to a crypto-savvy audience via Apex Fintech Solutions” CEO of Bakkt Gavin Michel said.
“It should also allow us to unlock more innovative opportunities that appeal to the next generation of consumers, such as crypto rewards and NFTs,” he added.
Apex Crypto, which is used by many app-based retail brokers including Webbullalso offers key services in the regulatory and licensing obligations of its customers.
As part of the deal, Bakkt will pay $55 million in cash and up to $45 million in Bakkt stock to Apex to complete the acquisition. An additional $100 million could be paid out in Bakkt shares and seller’s notes if certain financial targets are met by 2025.
The deal is expected to close in the first half of 2023.
Bakkt, which went public via the SPAC merger in 2021, is backed by the parent company of the New York Stock Exchange Intercontinental exchange ICE.
CEO of Apex Guillaume Capuzzi previously told Benzinga that it’s “incredibly difficult” to copy what Apex does and a company like Robinhood Markets HOOD wouldn’t exist without Apex.
Apex has announced a SPAC merger with Northern Star Investment Corp II NSTB in February 2021. At the time, Apex said it served 200 customers and 13 million customers. This figure included coverage of over 1 million crypto accounts.
As of December 2021, the deal had been terminated. Northern Star is currently looking for a new target.
BKKT Price Action: Shares of Bakkt are up 2% at $2.04 on Thursday.
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