Bakkt to buy Apex Crypto platform for $200 million

Bakkt’s institutional platform has signed a definitive agreement to acquire Apex Crypto, the crypto subsidiary of Apex Fintech Solutions. The deal is valued at up to $200 million.

We’re excited to share we signed a definitive agreement to acquire Apex Crypto from @ApexFintech https://t.co/kD54tIpIV6 pic.twitter.com/229KWMqXfC

— Bakkt (@Bakkt) November 3, 2022

According to the press release, at closing Bakkt will pay $55 million in cash and up to $45 million in its own stock depending on whether the acquired business meets financial targets in the fourth quarter of 2022.

A further up to $100 million may be paid to the seller in the form of shares and notes if Apex Crypto’s plans are met through 2025.

The parties expect to close the deal in the first half of 2023, subject to regulatory approval.

Apex Crypto is a platform for integrated cryptocurrency trading that provides trade execution, clearing, custody and tax calculations. The platform supports more than 30 digital assets.

“We have found in Apex Crypto a unique asset that will expand our cryptocurrency client base, enable us to bring new products to market more quickly, and serve as an additional channel to boost sales through Apex Fintech Solutions,” said Bakkt CEO Gavin Michael.

As part of the ongoing collaboration, Apex Fintech Solutions will gain the ability to offer clients products from the institutional platform.

The firm launched Apex Crypto in 2019 to enable investors to switch between stock trading and cryptocurrencies. The solution satisfies all regulatory and licensing obligations related to investing in digital assets, relieving clients of that burden.

In September, the Apex platform became Revolut’s partner as part of the latter’s initiative to expansion of the range of supported cryptocurrencies for US users. Until then, the fintech startup had ended its partnership with Paxos.

Bakkt had set a goal to increase revenue from $39.4 million last year to $60-80 million by the end of 2022. Ahead of its launch, the company Adam White, who had been with it since its founding, left.

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