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Republic and Seedrs announced today that they have made a deal for Republic, a private investment platform based in the U.S., to buy Seedrs, Europe’s largest online private investment platform, in a deal worth about $100 million (£75 million). With this deal, North America and Europe will be able to offer private investment opportunities to people all over the world for the first time. Republic recently announced that Valor Equity Partners would lead a $150 million (about £112.5 million) Series B funding round, which led to the purchase of Seedrs.
Republic hopes that this deal will help them grow quickly in Europe. Republic will put more money into expanding Seedrs’ reach in the region. This should help European investors and private businesses get access to new ideas and products.
Republic is a leading fintech company in the US. Through their retail platform, anyone can invest in private market equity, debt, or crypto offerings, and their private asset management practice is in charge of almost $1 billion. Republic’s platform for retail investors has deals for startups, real estate, cryptocurrency, music, games, and more. They keep making new products and getting more people to use them. They now have members in more than 100 countries.
Seedrs was the world’s first platform for regulated securities crowdfunding, and so far, nearly £1.5B has been invested on its platform. The platform was also the first to have a secondary market, and it has been home to some of the biggest successes in the industry, like Revolut, a leading digital bank that is worth more than $33 billion.
Republic and Seedrs have been working together for more than four years. Since they have been in the business for a long time, the Seedrs leadership team has helped Republic’s leadership team by giving them advice they can trust. The two companies have also made it possible for companies to raise money on both platforms at the same time. This lets them reach more investors.
“When we started Republic, our goal was to make private investments available to everyone,” said Kendrick Nguyen, the company’s founder and chief executive officer. “We knew we had to go global to make that happen.” We have been impressed by Seedrs’ technological skills, the strength of their team, and their strong presence in the UK and soon in Europe. We plan to build on the strengths of both companies in retail, secondary markets, cryptocurrency, and communities to make a clear leader in the industry. We are excited to work together to shape the future of the industry at this important time of growth and new ideas.”
CEO of Seedrs Jeff Kelisky added, “Seedrs’ goal has always been to make a global market for private equity. This deal is a natural extension of our work together with Republic to reach and exceed that goal. We have the same culture, the same goal, and the same commitment to the strategic opportunities that are coming up. We have a lot of respect for the teams at Republic, and if we work together, we can speed up our plans to build a powerful global private investment marketplace that will change the way finance works and how it helps the communities it serves.”
As part of the new structure, Jeff Kelisky will join Republic’s leadership team and keep his job as CEO of Seedrs. The Seedrs leadership team will stay in place so that the UK business can continue to grow and Republic’s plans to grow in Europe can be carried out.
The global institutional investment management firm Davidson Kempner Capital Management LP is also a part of this deal. In November 2021, Republic will buy Seedrs shares from Schroder UK Public Private Trust plc, Augmentum Fintech plc, and Omnis Income & Growth Fund. This will make Davidson Kempner a shareholder of the Republic. These shares add up to about a 30% stake in Seedrs as a whole.
The Financial Conduct Authority (FCA) and Seedrs shareholders must both agree for the deal to go through. The deal should be finished by the beginning of 2022.
The deal will be set up so that Republic will buy all of Seedrs Limited’s outstanding shares through a “scheme of arrangement.”
Shareholders and option holders of Seedrs will get a “core consideration” of about £23.59 for each Seedrs share they own. Most shareholders and option holders will get cash, but some will get Republic shares or a mix of cash and Republic shares.
In addition to the main consideration, the “carry” fee that Seedrs earns when investors sell securities they bought through Seedrs for a profit will be taken out of the deal and paid to exist Seedrs shareholders and option holders when it becomes clear. This will be true for all deals done on Seedrs for a year before and after the acquisition.
Republic is a company that works on financial technology. It lets anyone invest in private markets. Republic has a retail investment platform, a private capital division, and a blockchain advisory practise, all of which are separate business lines. The Republic ecosystem has invested more than $700 million, helped more than 600 companies, and has more than 1.5 million users from 100 different countries. Republic is backed by dozens of the best investment firms and banks, and its affiliated companies have invested alongside the biggest names in venture capital and private equity. Republic was started in 2016, and its headquarters are in New York City.
Seedrs is the best online investment platform in Europe. It is based in London, UK. It lets investors buy and sell shares in private companies, and it helps ambitious business owners get funding for their businesses while also building communities. Since its start in 2012, Seedrs has helped fund more than 1,400 deals, with nearly £1.5 billion invested on the platform to date. Seedrs is backed by over 4,600 of its own customers and some of the biggest investors in Europe.
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