Crypto-asset broker Voyager Digital Ltd will acquire LGO Markets, a French cryptocurrency exchange focused on corporate investors. The two companies will merge under one brand, Voyager, and their two independent local tokens, VGX and LGO, will also merge.
According to industry media reports, the transaction allows Voyager, a company listed on the Canadian Stock Exchange (CSE), to enter the European retail market through a “virtual asset service provider” license held by LGO in the French financial regulator.
LGO will stop focusing on institutional investors on October 31, because it also owns the Voyager brand. In order to complete the acquisition, Voyager will issue one million shares, the value of which will determine the final transaction price.
The other part will depend on the value of the merged internal encrypted token, which is reported to have “decentralized financial functions, such as community governance and mortgage rights with an initial interest rate of 7%.”
The transaction still requires regulatory approval. In CSE trading on Friday, Voyager shares fell 2.3% to 0.56 Canadian dollars (0.43 US dollars). Since the news of the acquisition on October 21, the stock has fallen more than 16%. The market value of the Voyager is $36.5 million.
Hugo Renaudin, CEO of Voyager, said:
European customers will be able to access the Voyager app using the European LGO regulatory settings, and both LGO and VGX tokens will be merged into a new token.
He added that “the new token will have greater utility”, thereby benefiting token holders in the United States, Europe and elsewhere.
LGO claims to be the institution’s “leading” crypto exchange, which provides “customizable services, first-class technology and strong liquidity.” The platform caters to “businesses who want to buy/sell or lend/borrow digital assets.”
What do you think of the merger of Voyager and LGO? Let us know in the comments section below.
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