Two of the UK’s most popular equity crowdfunding platforms – Seedrs and Crowdcube – have announced their intention to merge.
The deal will be structured as an acquisition of Seedrs by Crowdcube, with existing Crowdcube shareholders owning 60 per cent of the new company, and existing Seedrs shareholders owning the remaining 40 per cent.
Seedrs’ chief executive Jeff Kelisky will become chief executive of the newly-merged company, while Crowdcube’s chief executive Darren Westlake will serve as executive chairman.
“By joining forces, we’ll be able to harness the best of both companies as we accelerate our shared mission to create the world’s largest private equity marketplace,” said Kelisky and Seedrs’ executive chairman and co-founder Jeff Lynn, in a statement to shareholders.
“Together, we will help fund thousands of ambitious, fast-growth businesses and deliver exceptional returns to the investors who support them.
“In turn, the merger will allow us to create a more robust company, and we will be able to achieve our shared mission faster and more effectively when we are united.”
The deal is subject to approval by regulatory bodies including the Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA), as well as shareholders of both companies. Pending these approvals, the transaction is expected to be completed in late 2020 or early 2021.
Read more: The 2020 Peer2Peer Finance News P2P Power 50
Both Seedrs and Crowdcube have proven popular with peer-to-peer lending platforms and other finance-seeking alternative lenders. Platforms such as Assetz Capital, CapitalRise, Abundance, and EstateGuru have all raised money through Seedrs in recent months, while Propifi, LandlordInvest, and Ablrate are among the platforms which have benefitted from Crowdcube funding rounds.
Seedrs said that until the merger is completed, “it is business as usual at both companies”.
The platforms will continue to operate independently through completion of the deal, and “likely for some time thereafter”.