The acquisition aims to expand Bakkt’s cryptocurrency product offering and foster connections with additional client verticals such as fintechs, trading app platforms, and neo-banks. According to seekingalpha.com, Apex Crypto was developed to meet the increasing needs of more than 30 fintech firms and their customers across a rapidly expanding sector. Apex Crypto offers its clients a solution for execution, clearing, custody, cost basis, and tax services in order to streamline the delivery of frictionless crypto investing in more than 30 tokens.
Apex Crypto allows investors to transition between trading equities and cryptocurrency by offering efficient account opening and funding solutions. Furthermore, the Apex Crypto platform takes care of any regulatory and licensing obligations associated with cryptocurrency investing while supporting a holistic user experience.
As part of the transaction agreement, Bakkt and Apex Fintech Solutions will enter a commercial partnership that offers Bakkt crypto solutions to Apex’s client base. The collaboration between these two companies is expected to create faster speed to market for crypto products such as staking, external transfers, and NFTs. Bakkt officials cited by seekingalpha.com revealed their hopes for the partnership to unlock more innovative opportunities that appeal to the next generation of consumers such as crypto rewards and NFTs.
The transaction terms dictate that Bakkt will acquire Apex Crypto for a maximum purchase price of USD 200 million. Upon closing the deal, Bakkt will pay USD 55 million in cash and up to USD 45 million in Bakkt stock depending on how the acquired business meets its financial targets in the fourth quarter of 2022. Bakkt might also pay up to USD 100 million in stock and seller notes depending on Apex Crypto’s performance through 2025.
It's worth noting that the transaction is subject to required regulatory approvals and that it is expected to close in the first half of 2023.
In April 2022, American Bank has selected the Bakkt Crypto Connect solution to enable their bank customers to buy, sell, and hold Bitcoin and Ethereum. American Bank works to provide digital banking services to its customers in all 50 states. As part of the partnership, and as more consumers gain interest in buying cryptocurrency through their bank, American Bank will be able to rely on Bakkt’s educational materials and provide cost-effective access to cryptocurrency.
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