Crypto Platform EXMO To Be Acquired By Publicly Traded GoverMedia Plus
GoverMedia Plus, a publicly-traded Canadian holding company, has signed an agreement that could see it acquire cryptocurrency exchange EXMO.
As per an announcement published by the U.K.-based crypto exchange on November 13, 2018, the firm and its Canadian-based counterpart signed a Letter of Intent (LOI) that will see the latter acquire the cryptocurrency platform.
The Letter of Intent grants GoverMedia the freedom to engage in exclusive negotiations on the transaction, to be sealed in early 2019.
At the conclusion of the negotiation and acquisition, the two firms will work together in running the EXMO crypto exchange. According to EXMO, the joint entity will continue to be listed on a public stock exchange.
From the announcement, GoverMedia and EXMO teams are going to work together in hammering down a deal on how the final structure of the entity that emerges after the acquisition.
Other than that, due diligence will see the teams want to ensure that the transaction complies with all legal requirements.
GoverMedia chief executive Roland J. Bopp said that such a ‘business combination’ will see it get access to a new base of 2 million active users.
Besides, acquiring EXMO provides the Canadian firm with a tremendous opportunity to expand and tap into the lucrative European, North American, and Asian markets for additional revenue.
Bopp also noted that the deal would give it a head start they need to transform their business globally “with the scale and financial flexibility” necessary to see them achieve their long-term objective of creating value for its users.
Founded in 2013, EXMO has seen its business grow to include offices in London, Barcelona, Kiev, and Moscow. The exchange has also seen its customer base increase, currently over 1.5 million.
Additionally, the exchange boasts a base of 50,000 active traders, with over 100 trading pairs. It also provides users with access to six FIAT currencies, including the U.S Dollar (USD), Euro (EUR), and Russian (RUB).
The U.K headquartered firm ranks 44th on XBT.net, putting it among the top 100 cryptocurrency exchanges in terms of 24-hour trading volume.
According to data at XBT.net, EXMO currently has a 24-hour trading volume of over $29.5 million. BTC/USD and BTC/RUB (Russian ruble) accounting for the largest trading volumes at 25 percent and 18 percent respectively.
EXMO chief executive Sergey Zhdanov said that the pending deal would help raise its profile in the global crypto market, with improved security, credibility and reliability bringing in more users.
Canada-based GoverMedia also owns a Russian subsidiary dubbed GoverMedia Plus LLC. In its September update, the company revealed it has a registered user base of about 270,000; and that its targeted user base for 2019 would be one million.
The platform provides access to numerous services that include e-commerce, crowdfunding, and corporate auctions.
Crypto expansion via acquisitions
Several crypto-related acquisitions have been completed in recent months. One of the latest deals saw Belgium firm NXMH acquire Bitstamp crypto exchange which is currently valued at about $60 million, $21 million more than its value in 2014.
Huobi, the fourth largest crypto exchange, acquired controlling shares in Pantronics Holdings, a Hong Kong-based public firm. The September 2018 deal even led to speculation that Huobi was eyeing public listing via a ‘reverse IPO.’
In October, Goldman Sachs-backed Circle, which is valued at over $3 billion, was reported to be acquiring crowdfunding startup SeedInvest. The tech payment giant targets to use the platform to drive tokenization.
Still, in October, ticketing giant TicketMaster acquired blockchain startup Upgraded to leverage blockchain technology to digitize traditional tickets and make them tamper-proof.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.