Bakkt to Acquire Apex Crypto for up to $200M
Digital asset platform Bakkt has reached an agreement with Apex Fintech Solutions, Inc to acquire its crypto project; Apex Crypto. The move was to improve and expand Bakkt’s cryptocurrency product offerings and expand its footprint into additional client verticals including fintech, trading app platforms, and neo-banks.
Apex Crypto is an integrated crypto trading platform developed to serve more than 30 fintech firms. Apex Crypto offers trading in over 44 virtual currencies including Bitcoin, Ethereum, and Cardano.
The agreement reached on Thursday will cost Bakkt a maximum purchase cost of $200 million. An initial cash payment of $55 million will be made at the closing of the deal, up to $45 million of Bakkt’s stock depending on the acquired project performance at the end of 2022, and a whopping $100 million in stock and seller notes of Bakkt’s stock depending on the acquired project performance at the end of 2025.
Bakkt recruited Goldman Sachs as a financial adviser for the Apex Crypto acquisition, with Wilson Sonsini Goodrich and Rosati acting on regulatory matters. Additionally, PC and Alston & Bird, and Sidley Austin acted as legal advisors for the respective companies.
Bakkt Makes Big Moves Amid Bear Market
Commenting on the recent acquisition, Bakkt CEO Gavin Michael noted that the company found Apex Crypto to be a “unique asset.” He believes that the Apex Crypto acquisition will help Bakkt expand its crypto client base and provide “an additional avenue for continued sales to a crypto-savvy audience.”
The Apex Crypto acquisition shows Bakkt’s desire to expand its horizons and explore revenue diversification despite current market conditions. Bakkt also aims to create high-profile synergies with Apex Fintech while also facilitating innovation and development with complementary crypto solutions.
Meanwhile, Bakkt’s Apex Crypto acquisition follows another landmark partnership with Sullivan bank, a financial institution, in August. The move will likely expand Bakkt’s customer base and aid its ongoing efforts to drive mainstream adoption of cryptocurrencies.