By George Ward
Bakkt Holdings has signed an agreement to buy Apex Crypto. Bakkt believes this acquisition will allow it to expand its crypto offerings and user base. The deal costs over $200 million.
According to the report, Bakkt will pay a cash sum of $55 million upon the deal’s closure. Bakkt hopes to finalize the deal in Q1 2023, although this will depend on regulatory approval.
Also, Bakkt will pay another $45 million, but this would be in stock. However, this payment would depend on Bakkt’s Q4 financial targets for Apex.
Furthermore, Bakkt might also pay another $100 million in seller notes and stock. This will depend on the company’s financial targets for 2025.
Apex Fintech Solutions own Apex Crypto, and this subsidiary is a crypto asset firm that unlocks various crypto products for users. This purchase is expected to strengthen Bakkt’s crypto product line and user base.
According to the deal, Apex Fintech Solutions and Bakkt will enter a joint contract. As a result, Bakkt will provide crypto service offerings to Apex’s over 220 clients. Likewise, Apex Fintech Solutions can offer its users several products and solutions from Bakkt.
Gavin Michael, Bakkt CEO, said the company found a huge opportunity in Apex Crypto. This opportunity allows the company to expand its user base and product offering.
“Apex Crypto gives us a fast time to market novel crypto products. Also, it would serve as another channel for more sales to a crypto audience. Bakkt is also focusing on Web3 technologies such as NFTs, which appeals to the new generation of users,” Michael added.
Furthermore, Michael said the acquisition would help to attract more partnerships.
William Capuzzi, Apex Fintech CEO, said the company looks forward to a new partnership with Bakkt. He believes the cooperation will create a new era of innovation and expansion.
According to Capuzzi, Apex’s goal is to offer its users frictionless investment. He said partnering with Bakkt will allow it to achieve this goal.
Benefits For Both Firms
Meanwhile, the recent deal is expected to bring revenue benefits to Bakkt. Bakkt believes acquiring Apex’s crypto platform will increase the revenue streams and product development.
Further, the combined function of Apex Crypto and Bakkt would accelerate the availability of more crypto products. These products include NFTs, staking, and external transfers.
Apex Crypto, created in 2019, allows users to switch between crypto and stock trading. In addition, it offers investors different financing options and has a simple registration process.
The Bakkt platform launched in 2018 and has its headquarters in Alpharetta, Georgia. The platform boasts loyalty programs that increase users’ spending. Users can access the Bakkt platform through its mobile app.