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WonderFi to Buy Crypto Platform Bitbuy

www.financemagnates.com 05 January 2022 09:02, UTC
Reading time: ~2 m

WonderFi Technologies yesterday announced that the company has entered into a definitive agreement to purchase First Ledger Corp, the parent company of Canada’s Bitbuy Technologies, one of the leading crypto platforms in the country.

Founded in 2016, Bitbuy is an approved cryptocurrency marketplace in Canada. Through the acquisition, WonderFi is planning to establish itself as a prominent crypto and DeFi platform in the region. Due to surging interest in digital assets, Bitbuy saw immense growth in 2021.

The crypto platform serves more than 375,000 users. Over $4.4 billion has been transacted through the platform. In November last year, Bitbuy became the first approved crypto marketplace in Canada.

During the 12 months ended 30 September 2021, Bitbuy generated more than $31 million in revenue. Approved by the boards of directors of both WonderFi and Bitbuy, the mentioned acquisition is expected to close in Q1 2022.

“The integration of WonderFi and Bitbuy is a huge step forward in our mission of democratizing finance through easy and secure access to DeFi and crypto,” said Ben Samaroo, CEO of WonderFi. “A licensed marketplace serves as a crucial gateway to the digital asset economy and facilitates a robust end-to-end, unified client experience. The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value for the Company.”

Details of the Acquisition

Providing details of the acquisition, WonderFi highlighted that the company is planning to retain all employees of Bitbuy. Moreover, the acquisition will add more than 375,000 registered users to the WonderFi ecosystem.

“Under the terms of the agreement, the consideration to Bitbuy shareholders will consist of 70 million newly issued common shares of WonderFi, $20 million in upfront cash, and $30 million in deferred cash via a vendor-takeback note due in 12 months, implying an aggregate transaction value of approximately $206 million. WonderFi will use its balance sheet to fund the cash consideration,” the company added.

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