Robinhood Markets Inc is a Nasdaq listed financial services platform Robinhood Markets Inc lowered Its bid to be United Kingdom-based Ziglu is a crypto fintech company In light of current realities in digital currency ecosystem.
Ziglu’s interest was first disclosed in April, when Ziglu’s US-based brokerage app made a $170 million offer to acquire the startup.
Robinhood has changed its bid and is offering $72.5 million representing a £28.29 share price, an amount less than half its initial proposal. While this new bid will result in losses for some of Ziglu’s investors, Chief Executive Officer Mark Hipperson affirmed that the company’s board has already approved the new bid.
He explained that should Robinhood terminate the existing sales and purchase agreement (SPA), the company would be left in an “extremely challenging market, and undercapitalized for the period ahead.”
“The board has spent significant time in discussion with Robinhood’s CEO and executive team negotiating and improving the terms of their revised offer. Based on these discussions and other considerations, we believe the revised proposal…is the best and only reasonable path forward for the company,” Hipperson said.
Robinhood’s move to slash its offer to acquire Ziglu was influenced by the current market condition, which has revalued most companies by about 50 to 90%. Robinhood was unable to penetrate the United Kingdom in the beginning, so Ziglu is the best way to expand into the UK.
It is unknown when the new deal will close. Robinhood submitted a new bid. This is evidence that Robinhood is interested. According to CEO Vlad Tenev, to “work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe.”