Crypto firm Ziglu to be acquired by Robinhood for less than half of its initiall bid

    In view of the present reality in the digital currency ecosystem, the Nasdaq-listed financial services platform Robinhood Markets Inc. has dropped its offer for the cryptocurrency fintech company Ziglu, which is situated in the United Kingdom. The US-based brokerage app made public their interest in Ziglu for the first time in April, when they announced an offer of 170 million dollars to acquire control of the fledgling company.

    Robinhood has revised its offer and is now offering $72.5 million, which is equivalent to a share price of £28.29. This is a figure that is less than half of what it first proposed. Even though some of Ziglu’s investors may suffer financial losses as a consequence of this new proposal, Chief Executive Officer Mark Hipperson has confirmed that the board of directors has already given its approval to the new bid.

    He said that in the event that Robinhood decided to terminate the current sales and purchase agreement (SPA), the business would be placed in a “very tough market” and “undercapitalized for the time ahead.”

    “The board has spent a substantial amount of time in dialogue with Robinhood’s CEO and senior team in the hopes of negotiating and enhancing the conditions of their updated offer.” After having these conversations and taking into account other factors, we have come to the conclusion that the amended proposal…is the best and only feasible way for the firm to go ahead,” Hipperson stated.

    The present state of the market, which has revalued most firms by between 50 to 90%, was a factor in Robinhood’s decision to reduce the amount of money it was willing to pay to purchase Ziglu. Ziglu, with its regulatory support, client base, and innovative solutions, is the greatest hope for Robinhood to grow its presence into the United Kingdom. This is due to the fact that Robinhood’s original attempt to reach the United Kingdom around two years ago was unsuccessful.

    When exactly the new arrangement will be concluded is not known at this time. Nevertheless, it is clear from the revised proposal that Robinhood has filed that the firm is eager to “operate to use the best of both companies, finding new ways to develop, and breaking down barriers for clients throughout the UK and Europe,” as stated by CEO Vlad Tenev.

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