Bakkt Aims Fintech Expansion with a $200 Million Acquisition Deal

Bakkt Holdings (NYSE: BKKT), the cryptocurrency subsidiary of Intercontinental Exchange, is aiming to bolster its cryptocurrency and expand into other areas like fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term, trading app platforms and neo-banks with its decision to acquire Apex Crypto.

Announced on Thursday, the crypto company has already signed a definitive agreement for the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term with Apex Fintech Solutions, which is the present owner of Apex Crypto.

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

“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,” said the CEO of Bakkt, Gavin Michael.

The acquisition is expected to diverse Bakkt’s revenue streams, allowing the company to scale up its business.

Bakkt agreed to pay a maximum purchase price of $200 million for the acquisition. There will be an initial payment of $55 million in cash at the closing of the deal. Additional sums of up to $45 million and up to $100 million will be paid in Bakkt stocks based on the performance of the acquired business in the fourth quarter of 2022 and achievements of financial targets through 2025, respectively.

The companies expect to close the acquisition deal by the first half of 2023, but it will depend on the necessary regulatory approvals.

Diversified Crypto Businesses

Apex Crypto was established in 2019 to allow investors to transition between trading equities and cryptocurrencies. It offers a turnkey platform for integrated crypto trading. Its services are aimed at more than 30 fintech firms and their customers.

Michael also believed that adding the complimentary business would make Bakkt a “crypto provider of choice for financial institutions, fintechs, merchants or loyalty programs that want to offer seamless crypto experiences to their customers.” The company is even considering offering 'innovative opportunities' like crypto rewards and NFTs.

Apart from the monetary agreement, Bakkt and Apex Fintech Solutions further agreed to commercially partner for offering Bakkt’s crypto solutions to more than 220 clients of Apex.

“It’s our purpose at Apex to enable frictionless investing for everyone, and Bakkt’s team and platform are a tremendous complement to that,” said William Capuzzi, the CEO of Apex Fintech Solutions.