Crowdcube and Seedrs agree to merge
TechCrunch reports that the two main crowd-equity fundraising platforms in the U.K., Crowdcube and Seedrs, have agreed to terms on a long-rumored merger, thus creating one of the world’s largest private equity marketplaces. The value of the merged company is $140 million.
The merger is being structured as an acquisition by Crowdcube of all of the outstanding share capital of Seedrs, via scheme of arrangement. Existing Crowdcube shareholders and option holders will own 60% of the combined company, and existing Seedrs shareholders and option holders will own 40% of the combined company. According to a joint statement, the merger ratio reflects the approximate valuations of the two companies based on each of their most recent fundraising rounds.