Crypto brokerage platform Voyager is going to acquire the wallet startup Ethos.io for around $4 million.
As reported by Coindesk on February 28, Voyager will take control over a number of products developed by the wallet platform, including the Ethos Universal Wallet and the blockchain platform Ethos Bedrock, along with a few “technology and IP.”
Breaking News: Ethos has been acquired by Voyager. Uniting together to build the premier end-to-end crypto broker, wallet service and blockchain financial platform.
— Ethos.io (@Ethos_io) February 28, 2019
Both the companies were already collaborating in the development of a few projects, as they entered into a partnership deal in last October.
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Confirming the acquisition, Steve Ehrlich, CEO of Voyager, told Coindesk: “Before we had separate priorities, but we liked so much what we started together as strategic partners that we decided to bring our resources together. There is some different expertise at the two developer teams, and now they are working closely together.”
A Public Blockchain Company
Earlier this month, Voyager went public in the Canadian market via a reverse merger deal with a dormant company listed on Canada’s TSX Venture Exchange, bypassing the traditional IPO approach.
The publication detailed that the New Jersey-based crypto brokerage will make the payment with its listed shares. The company will transfer seven million of its common shares, valued at CAD 0.80 each share – putting the total value of the deal at CAD 5.6 million (around $4 million).
However, the company will not pay the entire amount upfront.
According to the inked deal, 3.3 million shares will be delivered to Ethos at the start, one million will be held in escrow and released monthly over two years, while the rest 2.6 million will be held in escrow for 24 months “against any future indemnity claims.”
Moreover, to receive the monthly shares, the Singapore-based wallet platform will have to work on the integration of its technology on Voyager.
Also, as a part of the deal, Ethos’ founder and CEO Shingo Lavine will take the position of chief innovation officer at Voyager and will also join the firm’s board. In addition, the wallet platform’s former owners will also nominate a member of the board of directors once they have received at least 3.5 million shares.