" class="no-js "lang="en-US"> Republic to acquire Seedrs in ~$100M deal
Friday, December 02, 2022

Republic to acquire Seedrs in ~$100M deal to create the first global private investment platform

Republic and Seedrs announced today that they have entered into an agreement for Republic, the U.S. based private investment platform, to acquire Seedrs, Europe’s leading online private investment platform, in a deal that values Seedrs at approximately $100 million (~ £75 million). This deal will create the first global private investment marketplace with offerings across North America and Europe. The acquisition of Seedrs follows Republic’s recent $150M(~ £112.5 million) Series B financing announcement, led by Valor Equity Partners.

With this deal, Republic expects to rapidly advance their presence in Europe. The additional capital Republic will commit toward expanding Seedrs reach in the region is expected to help deliver new innovations and products for European investors and private businesses.

Republic is a leading US fintech company that allows everyone to invest in private market equity, debt or crypto offerings through their retail platform and has almost one ($1) billion dollars under management through its private asset management practice. Republic’s retail investment platform hosts offerings across startups, real estate, crypto, music, gaming, and more. They continue to expand their product as well as their geographic reach with members in over 100 countries.

Seedrs was the first regulated securities crowdfunding platform in the world and has seen nearly £1.5B invested on its platform to date. The platform was also the first to introduce a secondary marketplace and has hosted some of the industry’s most significant success stories, including Revolut, a leading digital bank valued at over $33B.

Republic and Seedrs have maintained a longstanding partnership over the last four years. As veterans of the industry, the Seedrs leadership team have served as trusted advisors to Republic’s leadership team. The two firms have also enabled companies to co-raise on both platforms in order to reach a greater number of investors.

“Republic launched with the mission to make private investments accessible to all,” said Kendrick Nguyen, Republic’s founder & CEO, “We knew international expansion was necessary to achieve cross-bordered participation. 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.”

Jeff Kelisky, CEO of Seedrs added, “Seedrs’ ambition has 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. 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, Jeff Kelisky will join Republic’s leadership team and continue as Seedrs CEO.  Seedrs’ leadership team will remain in place to continue to grow the UK business and deliver on Republic’s European expansion plans.

The deal also sees participation from Davidson Kempner Capital Management LP, the global institutional investment management firm. Davidson Kempner will become a shareholder of Republic through their acquisition of Seedrs shares from Schroder UK Public Private Trust plc, Augmentum Fintech plc and Omnis Income & Growth Fund in November 2021. These shares represent in aggregate approximately a 30% stake in Seedrs.

The transaction is subject to the consent of, among others, the Financial Conduct Authority (FCA) and Seedrs shareholders. The transaction is expected to be completed in early 2022.

The transaction will be structured as an acquisition by Republic of all of the outstanding share capital of Seedrs Limited via scheme of arrangement.

Seedrs shareholders and option holders will receive “core consideration” of approximately £23.59 per Seedrs share. Most shareholders and option holders will receive this in cash, but some will receive Republic shares or a combination of the two.

In addition to the core consideration, the “carry” fee that Seedrs earns when investors sell the securities previously purchased through Seedrs at a profit will be carved out of the transaction and paid to existing Seedrs shareholders and option holders as it crystallizes in the future. This will apply to all deals done on Seedrs before, and for a year after, the acquisition completes.

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