Digital Platform, Bakkt Buys Apex Crypto for $200M

When the agreement closes, the company will pay $55 million in cash, and upon reaching certain financial goals, it will pay $145 million in stock and seller notes.

The crypto trading infrastructure company Apex Crypto will be purchased by digital asset platform Bakkt Holdings (BKKT) from Apex Fintech Solutions, the company said on Thursday.

Intercontinental Exchange (ICE) has a controlling stake in Bakkt, which will pay $55 million in cash at the closure of the agreement and up to $145 million in Bakkt shares and seller notes if certain performance goals are met.

The transaction will benefit Bakkt by increasing revenue, reducing costs, and creating synergies. It is anticipated to conclude in the first half of 2023. It will also aid the company in growing its cryptocurrency clientele. For execution, clearing, custody, cost basis, and tax services, Apex Crypto provides solutions.

2018 saw the launch of Bakkt, which raised its first $182.5 million to develop its bitcoin (BTC) futures and options product. After successfully merging with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings, it went public in October of last year.

The company that advised Bakkt financially was Goldman Sachs (GS). Bakkt’s legal counsel was provided by Wilson Sonsini Goodrich and Rosati, PC, Alston & Bird LLP, and Apex Fintech Solutions’ legal counsel was provided by Sidley Austin LLP.

“With the addition of this complementary business, we believe we are poised to be a crypto provider of choice for financial institutions, fintechs, merchants or loyalty programmes that want to offer seamless crypto experiences to their customers,” said Gavin Michael, CEO of Bakkt. “It’s also expected to enable us to unlock more innovative opportunities that appeal to the next generation of consumers such as crypto rewards and NFTs.”