UK-based crowdfunding platform Seedrs has been acquired by US investment group Republic, in a $100m (£75m) deal which will create the first global private investment marketplace with offerings across North America and Europe.
The deal comes just eight months after Seedrs terminated a planned £140m merger with Crowdcube, after the Competition and Markets Authority (CMA) announced plans to block the deal.
Seedrs’ chief executive Jeff Kelisky hailed the Republic acquisition as “a big step for Seedrs and… a giant leap for the industry.”
“We have always believed that, ultimately, you need to be a player of scale to serve the market effectively and operate cross-border across all key markets,” Kelisky said.
“With Republic and Seedrs leading in our respective geographies, each having developed unique strengths in product and market terms, the combination of the two platforms firmly puts us on the front foot to offer far better customer products and services, on the global stage as we continue to scale.”
The acquisition also includes an injection of capital so that Seedrs can power its European expansion. Kelisky announced that Republic had made a “substantial investment into Seedrs to accelerate expansion in the region”.
He added that Seedrs will continue to service its UK businesses and investors, but plans to “redefine the segment by leading on innovation, customer service, supporting diversity, and trust.”
“Our mission remains unchanged, but now we will have more resources to continue building innovative products that serve our business and investors in the best way possible,” said Kelisky.
“As a global entity Republic and Seedrs see a bright future ahead of us.”
Approval by Seedrs shareholders and the Financial Conduct Authority (FCA) will be required before the deal completes, and this is expected to take a few months.
In the meantime, Seedrs customers have been told that the service they receive will continue as usual, and they can still invest and raise capital, and buy and sell shares in the secondary market, as before.