Seedrs has been acquired by a US-based financial technology firm in a deal valuing the crowdfunding platform at $100m (£75m).
Republic plans to inject “substantial” funds into Seedrs to drive growth in the UK and Europe following the takeover.
It comes after Seedrs was forced to abort a merger with rival crowdfunding platform Crowdcube earlier this year, when the CMA blocked the deal on competition grounds.
Republic, which is headquartered in New York and recently closed a $150m Series B funding round, said it expected the deal with Seedrs to lead to new innovations and products for European investors and private businesses.
The two businesses had already partnered together over four years.
Seedrs CEO Jeff Kelisky added that the company’s ambition had always been to build a global private equity marketplace.
“This transaction is a natural development of our partnership with Republic to achieve and go beyond that ambition,” he said.
“We share a similar culture, a common goal, and a commitment to the strategic opportunities that lie ahead. We have great admiration for the teams at Republic, and together we can accelerate our plans to create a powerful global private investment marketplace that will transform the finance ecosystem and the communities they serve.”
As part of the new structure, Kelisky will join Republic’s leadership team and continue as Seedrs CEO. The leadership team at Seedrs will remain in place to continue to grow the UK business and deliver on Republic’s European expansion plans.
Republic founder and CEO Kendrick Nguyen said: “In working with Seedrs, we have admired their technological capabilities, the strength of their team and their strong presence in the UK and soon Europe.
“We anticipate further developing the strengths of both companies from retail, secondaries, crypto, and communities to create a clear industry leader. We look forward to working together to shape the future of the industry at this critical stage of growth and innovation.”
Founded in 2016, Republic allows users to invest in private market equity, debt and crypto offerings through its retail platform. It has almost $1bn under management through its private asset management practice.
London-headquartered Seedrs has funded more than 1,400 deals since launching in 2012, with almost £1.5bn invested on the platform to date.
The transaction is subject to consent from the Financial Conduct Authority and Seedrs shareholders, and is expected to be completed in early 2022.
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