Republic agrees to acquire crypto trading company INX for up to $60 million

Republic, the New York City-based financial services firm, has entered into a deal to acquire Canadian crypto trading firm INX Digital Company (ticker INXDF) for up to $60 million. The transaction is expected to close within eight months, the firms said on Thursday.

INXDF is up 180% to nearly $0.10 at press time.

The deal's final dollar amount ranges between $48.9 million and $60 million depending on certain shareholder conditions. A Republic subsidiary will purchase all of INX's outstanding shares at a 457% premium based Wednesday's closing price, according to a company release.

Republic, an existing INX shareholder, will fold INX into its operations to bolster its blockchain investment services, such as trading security tokens or swapping real-world assets. The acquisition creates "a seamless pathway" for Republic to raise additional capital and enter into secondary marketplace opportunities across the digital asset ecosystem, the release continues. 

"This is a defining moment for INX and the future of digital finance. Joining forces with Republic accelerates our vision of a fully regulated, tokenized economy that empowers investors globally," INX founder and CEO Shy Datika said in a statement. "By combining INX’s expertise in security token and cryptocurrency trading with Republic’s global investment reach, the merged entity will offer a full investment lifecycle in a regulated and scalable ecosystem — bridging traditional finance and blockchain technology."

The acquisition comes after INX and Republic enter into a partnership in June 2023 to bolster its web3 and tokenization infrastructure, The Block previously reported. Republic invested $5.25 million into INX and acquired roughly 9.5% of INX's outstanding shares at the time.

INX provides a regulated platform to buy and trade cryptocurrencies as well as tokenized securities, such as onchain stock from the computer hardware manufacturer Nvidia.