The transaction is expected to close in the first half of 2023 and is subject to required regulatory approvals.
Bakkt has signed a definitive agreement to acquire Apex Crypto, LLC from Apex Fintech Solutions, Inc. in a move that is expected to significantly bolster its cryptocurrency product offering and expand its footprint into additional client verticals including fintechs, trading app platforms, and neo-banks.
Bakkt reached a deal to acquire Apex Crypto for a maximum purchase price of $200 million: $55 million in cash at the closing of the deal, following by up to $45 million in Bakkt stock depending on the performance of Apex Crypto in Q4 2022, and up to an additional $100 million in Bakkt stock and seller notes depending on its performance through 2025.
Apex Crypto handles execution, clearing, custody, cost basis and tax services
Apex Crypto provides a turnkey platform for integrated crypto trading that supports clients with execution, clearing, custody, cost basis and tax services facilitating the delivery of frictionless crypto investing in more than 30 tokens.
The acquired firm was launched in 2019 to help investors transition between trading equities and cryptocurrency by offering efficient account opening and funding solutions. The platform also handles complex regulatory and licensing obligations associated with cryptocurrency investing. Apex Crypto currently caters to over 30 fintech firms and their customers, but business is rapidly expanding.
The deal between Bakkt and Apex Fintech Solutions includes a commercial agreement that memorializes the continued relationship and provision of Bakkt crypto solutions to Apex’s 220+ clients. Apex Fintech Solutions will have the opportunity to bring Bakkt’s leading platform solutions to its clients.
Bakkt eyes FIs, fintechs, merchants, crypto rewards, staking, NFTs
Gavin Michael, CEO of Bakkt, said: “We found a unique asset in Apex Crypto, which will expand our crypto client base, provide us with faster speed to market for new crypto capabilities and serve as an additional avenue for continued sales to a crypto-savvy audience through Apex Fintech Solutions. 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 programs that want to offer seamless crypto experiences to their customers. 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.”
William Capuzzi, CEO of Apex Fintech Solutions, commented: “It’s our purpose at Apex to enable frictionless investing for everyone and Bakkt’s team and platform are a tremendous complement to that. We look forward to working together to continue to provide customers a seamless crypto experience and access to an expanded solution set. This is the beginning of an exciting time of growth and innovation for both of our organizations.”
The transaction is expected to deliver revenue diversification and synergies to Bakkt as it scales its offerings and accelerates Apex Crypto’s product innovation and development, with complementary crypto solutions. The joint capabilities are expected to create faster speed to market for more advanced crypto products, including staking, external transfers and NFTs.