Australian Crypto Exchange Swyftx, Trading App Superhero Reveal ‘$1B’ Merger
- Leading Australian crypto exchange Swyftx will merge with retirement and equities trading platform Superhero to create the country’s first crypto “super app”
- Following the completion of the deal, both business’ services are expected to be bundled under one interface for their combined 800,000 strong customer base
Swyftx, one of Australia’s largest crypto exchanges by total volume and ASX trading platform Superhero said Tuesday they will merge to create a “$1.5 billion (US$1 billion) financial services giant.”
The merger will forge Australia’s first crypto “super app” that offers access to both decentralized and traditional finance by enabling investment in crypto, retirement funds and equities, according to a statement.
Efforts to create Australia’s first financial super app are becoming increasingly competitive with the country’s banks muscling in to leverage their extensive customer base. A super app is a platform designed to bundle multiple services from existing businesses across various sectors in an attempt to create a seamless customer experience.
“The proposed merger represents a significant step for both businesses in terms of their evolution from disruptive tech players into a single, major financial institution that can grow across domestic and international markets,” said Swyftx co-founder Alex Harper.
Both companies said they have experienced explosive growth over the last 12 months with Brisbane-based Swyftx clocking a 1,200% increase in users while the online share trading platform has witnessed a 600% rise.
The $1 billion figure is an agreed valuation by Swyftx and the Superhero board of directors based on various business fundamentals including past revenue and forecast revenue, a spokesperson told Blockworks.
“There’s confidence among both parties that the combined business easily justifies the valuation,” the spokesperson said. “This is two private companies coming together in a transaction with a significant equity component, so the key is relative valuation.”
Over 800,000 customers are expected to be counted at the completion of the deal, with 200,000 being tacked on to Swyftx via the superannuation and trading platform’s existing customers. Like a 401(k) in the US, superannuation is Australia’s retirement pension fund plan designed to deduct a portion of an employee’s income into a long-term savings account.
Both platforms will continue to operate their separate platforms while plans are made to offer both service offerings to investors. Following the deal’s wrap up, customers of both platforms will be able to log in via a unified interface under a single account.
The combined business will serve investors across Australia and New Zealand with offices in Sydney, Brisbane, London and Vancouver. The merger is expected to be completed early next year.
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