Crypto platform Ziglu courting buyers as Robinhood deal collapses
- Ziglu is in talks with investors to purchase the firm at a lower price.
- The London-based company has hired investment bankers to handle the sale.
Following the failure of its acquisition agreement with Robinhood (HOOD), cryptocurrency platform Ziglu is in discussions with investors interested in buying it for a lesser price, according to a 23 March report.
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As per the article, the London-based company is in talks with several potential buyers and has hired investment bankers to manage the sale. To fund operations until a sale is reached, the company is also aiming to raise about 2 million British pounds ($2.46 million) at a valuation of $12.3 million.
Robinhood’s deal with crypto firm Zinglu
In a deal that would have given the American online brokerage company a fully regulated branch in the United Kingdom, Robinhood agreed to purchase Ziglu for $170 million. It reduced the offer to $72.5 million in August, though, and the sale fell through.
In addition to trading and purchasing 11 different cryptocurrencies, Ziglu also provides a “Boost” product that gives consumers a yield on their holdings. The company became the third business to receive authorization from the financial regulator Financial Conduct Authority (FCA) to provide cryptocurrency services in the UK in 2020. The greatest fundraise on Seedrs in 2021 was made by Ziglu in November when it raised almost $7 million.
According to the blog post, Robinhood’s long-term objective was to integrate Ziglu more thoroughly into its platform to “bring the Robinhood brand overseas.”
Why was the deal canceled?
Robinhood’s deal to acquire the British crypto business Ziglu have been scrapped. Given the picture it created during a renegotiation last year, the dead pact puts pressure on Ziglu to address its future.
According to information provided by the business in yesterday’s earnings release, Robinhood canceled the contract earlier in the month. Its ownership of part Ziglu shares resulted in a $12 million impairment penalty when it was written down to zero.