Investment trading platform PrimaryMarkets Limited (PrimaryMarkets) today received an all-script Takeover Offer from Linqto Inc (Linqto), a California-based global investor network and investment platform.
Linqto has recognised the rapid growth of PrimaryMarkets’ investor network (49,000+); its private equity trading platform which can easily be extended into the US market; and its Digital Registry Services to allow for blockchain-based registration of securities registries.
PrimaryMarkets and Linqto have complementary histories progressing from start-up ideas to revenue generating businesses, having successfully developed working applications and built investor networks.
The Takeover Offer follows the recent agreement between Linqto and Hard Yaka Inc., a successful, well-connected San Francisco-based advisory/investing party. Hard Yaka was founded by Mr. Greg Kidd who was also a founding adviser/investor in both Twitter and Square and who has agreed to become an advisor to Linqto.
The Takeover Offer values each of PrimaryMarkets and Linqto at US$12M/A$16.67M or combined US$24M/A$33.34M.
All PrimaryMarkets Directors have recommended acceptance of the Linqto Offer and they all intend to accept the Linqto Offer.
Upon achieving the minimum acceptances of the takeover, PrimaryMarkets Founder Gavin Solomon will become Executive Chairman of Linqto along with Nicholas Capp as CEO.
PrimaryMarkets has been exploring synergies with Linqto since July 2018, particularly in relation to the Linqto platform and App which connects accredited investors with Global Deal Flow and was recently deployed across the Keiretsu Forum (the largest investor network globally according to PitchBook ranking 2017 and Q32018) active across 53 Forum Chapters in 4 continents and 26 countries.
The opportunity for PrimaryMarkets is to leverage the Linqto fintech relationships with the Keiretsu Forum and other identified USA based investor networks, targeting a combined investor network of 300,000+ by the end of 2019.
Nicholas Capp, Founding MD/CEO of PrimaryMarkets said:
“PrimaryMarkets is delighted and honoured that a successful Silicon Valley enterprise such as Linqto has identified what we have built and the worldwide opportunities that our business offers and hence they have now made their Takeover Offer which our PrimaryMarkets Board and Major Shareholders unanimously support.
Together PrimaryMarkets and Linqto can provide unprecedented depth and technology to accredited and sophisticated investors to invest and trade securities in private/unlisted companies, creating visibility and transparency to an otherwise opaque market. Our combined technologies will deliver registry services, tokenised markets, portfolio management, data and analytics, capital raising and secondary trading to established investor networks.
Together the combined resources and expertise of Linqto and PrimaryMarkets presents an attractive global investment proposition. We welcome Linqto as our merger partner”.
Bill Sarris, Founder/Inventor/CEO of Linqto said:
“In 2021, your crypto wallet will be part of your trading platform. You will trade private stock as easily as in the public markets. Cryptocurrency will be a global standard for trading in the private sector. Companies will choose to remain permanently private and the need for public capital will be rendered moot.
Linqto’s Board unanimously approved this Takeover Offer of PrimaryMarkets for numerous reasons including:
- Significant business synergies both for revenue growth and cost savings.
- Strategic alignment of Linqto and PrimaryMarkets – as both companies operate complementary networks which deliver best-in-class outcomes for investors and funding for companies.
- Diversified geographic exposure.
- Provides PrimaryMarkets shareholders with increased exposure to the large US (and other global) market.
- With the traction supplied by Linqto’s Investor Platform, Linqto recognized the potential for PrimaryMarkets to provide a private equity trading platform to enable liquidity for its private investor base.
Linqto is acquiring PrimaryMarkets, an established global trading platform, to launch its platform as part of the Global Investor Platform.
The Takeover will allow the establishment of an inclusive trading platform and the capability for the Linqto Platform to broaden our revenue model from a strictly SaaS model to a transaction-based model, whereby Linqto will share in commissions and broker fees realized by the Platform”.