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Securitize agrees Distributed Technology Markets takeover
Posted on Thursday, 15 October 2020 14:42
Digital securities lifecycle management platform operator Securitize has signed on the dotted line to acquire broker-dealer Distributed Technology Markets (DTM).
No financial details of the transaction, which still requires approval from regulatory authorities, have been disclosed.
Under the terms of the deal, Securitize will also pick up money services provider Velocity Platform.
Commenting on the purchase, the buyer’s chief executive, Carlos Domingo, said the move would enable the firm to develop a suite of services for private capital markets which would result in improved interaction between issuers and investors and be the top offering in its industry.
His counterpart at DTM, Chris Wittenborn, added: "There are enormous opportunities in private market securities issuance and trading. Partnering with industry-leader Securitize will allow us to capitalize on these untapped markets at scale."
The target is currently a subsidiary of Velocity Markets and was founded in 2015.
It recently received the regulatory green light for primary issuance and secondary trading of private placement securities, including digital asset securities.
According to Zephyr, the M&A database published by Bureau van Dijk, Securitize’s most recent acquisition was announced in December 2019, when the company signed on the dotted line to purchase Tokyo-headquartered blockchain technology consultancy KK Buidl.
No financial details of the transaction were disclosed.
The buyer describes itself as one of the most successful and recognised companies in the digital securities space, having signed more than 150 customers and over 40,000 investors using its digital securities issuance and lifecycle management technology.
Zephyr shows there have been 127 deals targeting investment banking and securities dealing companies announced worldwide since the beginning of 2020.
Of these, the most valuable is worth USD 3.21 billion and took the form of a capital increase as China International Capital issued stock amounting to a 24.8 per cent stake via a placing and public offering.
© Zephus Ltd