Voyager Digital, a public digital asset broker based in New York, has agreed to buy LGO. The French crypto exchange will primarily serve institutional investors as the company expands in Europe.
The deal requires regulatory approval, which the parties should accept by the end of this year. The value of the agreement will depend on Voyager shares and the corporate brand when it closes. At current prices, it is in the low seven-digit range.
However, the deal is smaller than this year’s cryptocurrency mergers and acquisitions, such as Binance’s $ 400 million acquisition of CoinMarketCap and $ 150 million of FTX’s investment in Blockfolio.
A Rare Twist
This deal is unusual because Voyager is replacing the utility tokens from both companies, VGX, and LGO, with newly created tokens. Furthermore, the two will have decentralized funding (DeFi) functions, such as community management and betting an initial 7% interest rate.
Voyager founder and CEO Stey Enrlich stated that they believe this brings old-fashioned mergers and acquisitions into a world of symbols, as never before.
Upon completion, Voyager, listed on the Canadian Stock Exchange, will offer one million shares to purchase and operate on the European retail market; virtual assets provider LGO is registered with the French Financial Markets Authority (AMF). All activities will go on under the Voyager brand, and LGO will cease institutional services on 31 October. Voyager shares closed at C $ 0.67 ($ 0.51) on Wednesday.
Shifting to Retail Customers
Hugo Renodin, co-founder and CEO of LGO, said that its other option is to serve its institutional clients better; that means cash registers offer new and exotic derivatives. After a review, he said the team decided to shift its focus to retail customers.
“The ultimate decision-maker is the one that gives our token the highest value,” said Renodin. “We just realized it then. We have icon holders, and they are mostly retail customers.”
However, it is not the first acquisition of Voyager, which went public. In early 2019, it was part of a merger with a Canadian mineral exploration firm. Previously, it had also acquired the Ethos.io startup portfolio for around $ 4 million.
Enrlich, in conclusion, said that they are becoming a financial services company of the future. They hope to incorporate acquisitions that can add products, customer resources to the platform, or other tokens and communities that will serve as the foundation for what we are trying to do.