Digital asset platform Bakkt will acquire crypto trading infrastructure firm Apex Crypto for up to $200 million. Bakkt will pay $55 million in cash initially and up to $145 million in Bakkt stock and senior notes after certain financial targets are met.
Digital asset platform Bakkt Holdings (BKKT) will acquire crypto trading infrastructure firm Apex Crypto from Apex Fintech Solutions.
Bakkt, majority-owned by financial exchange Intercontinental Exchange (ICE), will initially pay $55 million in cash at closing and up to $145 million in Bakkt shares and sell-side notes after certain financial targets are met.
The transaction is expected to close in the first half of 2023 and will provide Bakkt with revenue growth, cost savings and synergies. It will also help the company expand its crypto customer base. Apex Crypto provides solutions for execution, clearing, custody, cost basis and tax services.
Founded in 2018, Bakkt initially raised $182.5 million to build out its Bitcoin (BTC) futures and options products. It went public last October after completing a merger with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings.
Goldman Sachs (GS) is Bakkt's financial advisor. Wilson Sonsini Goodrich and Rosati, PC and Alston & Bird LLP are serving as legal counsel to Bakkt, while Sidley Austin LLP is serving as legal counsel to Apex Fintech Solutions.
Gavin Michael, CEO of Bakkt, said: “With the addition of this complementary business, we believe we are well-positioned to become the crypto provider of choice for financial institutions, fintech companies, merchants or loyalty programs looking to provide their customers with seamless crypto experience.” . “It also promises to enable us to unlock more innovative opportunities to engage the next generation of consumers, such as crypto rewards and NFTs.”
