Australian Crypto Exchange Swyftx, Trading App Superhero Reveal ‘$1B’ Merger
Australia is expecting its first “super app” via a deal announced by crypto exchange Swyftx and traditional stock trading platform Superhero
Sydney, Australia | Source: Shutterstock
key takeaways
- Leading Australian crypto exchange Swyftx will merge with retirement and equities trading platform Superhero
- 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 attempt to 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.
The race is on to create Australia’s first financial super app, a platform designed to bundle multiple services from existing businesses across various sectors in an attempt to present a seamless customer experience. The country’s banks are leveraging their extensive customer bases in hopes of claiming the title, sans crypto.
“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,” Swyftx co-founder Alex Harper said.
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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