Bakkt Holdings, the US-based digital asset marketplace spun off by financial exchange operator Intercontinental Exchange, agreed to merge with special purpose acquisition company VPC Impact Acquisition Holdings yesterday.
The deal is set to create a company valued at $2.1bn once it goes through, and it will take the place on the New York Stock Exchange secured by VPC – which is sponsored by investment adviser Victory Park Capital – when it floated in a $200m initial public offering in September 2020.
Intercontinental Exchange is committing $50m to a $325m private investment in public equity (PIPE) investment in the company in connection with the reverse merger.
Founded in 2018, Bakkt provides a range of digital currency services through its online platform, including crypto trading and a mobile wallet that facilitates the holding and use of loyalty points, gift cards and in-game assets.
The company secured almost $183m in series A funding in 2018 from investors including Intercontinental Exchange, software provider Microsoft’s M12 unit, payment technology producer PayU and consulting firm Boston Consulting Group.
Crypto asset trader CMT Digital and trading firm Eagle Seven also took part in the 2018 round, together with Galaxy Digital, Goldfinch Partners, Horizons Ventures, Pantera Capital, Protocol Ventures and Alan Howard.
Bakkt added $300m in a March 2020 series B round featuring M12, PayU, Intercontinental Exchange, Boston Consulting Group, CMT Digital, Goldfinch Partners and Pantera Capital.
PJ Solomon is financial adviser for Bakkt on the reverse merger while Shearman & Sterling is its legal adviser on the deal. Jefferies and Citigroup are financial and capital markets advisers to VPC and co-placement agents on the PIPE. Jefferies is lead capital markets adviser for VPC and White & Case is legal adviser.
