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Voyager to acquire Circle Invest
Posted on Thursday, 13 February 2020 11:19
Circle Internet Financial has agreed to offload Circle Invest to Voyager Digital Canada adding more than 40,000 retail accounts to its customer base, making it one of the largest digital-asset-only agency brokers in the US.
The target is an investment application for individual investors.
Voyager will issue common shares to Circle as consideration, representing around 4.0 per cent ownership, and will reimburse certain costs to the vendor.
The two businesses will partner on strategic initiatives, such as delivering fast, global, low-cost payments to the combined customer base, while leveraging products to solidify its treasury management infrastructure and expand internationally.
Circle Invest’s retail clients will now also have access to Voyager’s unique brokerage services, which include commission-free trading of more than 30 crypto assets, lock-up free interest yield on popular coins and digital transfers, among other capabilities.
Completion is expected in March 2020 and the deal gives the target’s customers access to extended digital assets and robust investment and trading features.
Stephen Ehrlich, chief executive of Voyager, said: “This transaction also helps us deliver on our promise to investors, providing regulated brokerage services and resources to as many users as possible in the digital asset marketplace.”
Shares in the acquiror closed up 13.9 per cent to CAD 0.45 (USD 0.34) following the announcement yesterday, representing a market capitalisation of CAD 28.30 million.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 109 deals targeting all other financial investment activities providers announced worldwide in 2019.
In the largest of these Shanghai Shixin Electric acquired a 73.5 per cent stake in Yingda International Trust and a 96.7 per cent interest in Yingda Securities for a combined CNY 14.40 billion (USD 2.07 billion).
Qazaqstannyng Ornyqtylkyq Qory, Millennium Trust Company and iShares MSCI Emerging Markets, among others, were also targeted last year.
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