Quick take:
- Cryptyde has signed a $93 million deal to acquire fintech company Forever 8 Fund.
- The blockchain firm will pay up to $56.4 million through a combination of equity, convertible notes and debt assumption.
- Forever 8 shareholders will also receive a further $37 million will also be paid in contingent cash or equity consideration.
Cryptyde has agreed to buy Forever 8 Fund in a deal with $93 million. The deal includes a payment of up to $56.4 million through a combination of equity, convertible notes and debt assumption. Shareholders of the e-commerce fintech company will also receive an additional $37 million in contingent cash or equity consideration.
Forever 8 Fund provides online funding solutions to Amazon and Shopify merchants among other leading e-commerce businesses.
Commenting on the deal, Cryptyde President and CEO, Brian McFadden said: “Forever 8 fills a crucial need for anyone selling products on the internet. They have proven there is a demand for their financing model with impressive growth over the past 18 months.”
McFadden thinks that the acquisition is happening at an opportune time when Cryptyde is building its suite of products to power the future of web3.
Recently, web3 lending platforms have suffered from the crypto winter with some like BlockFi forced to find suitable buyers while crypto hedge fund 3 Arrows Capital filed for bankruptcy.
Another crypto lender BendDAO, which allows users to borrow against blue-chip NFTs was recently facing liquidity problems after investors pulled their ETH.
Cryptyde is looking to leverage Forever 8’s success in e-commerce lending to offer a more balanced product to web3 businesses.
Forever 8 uses a decentralized, SKU-based funding model, enabling it to run a fully automated system that does not require a personal guarantee, credit check or traditional lending requirements.
Forever 8 Co-Founder, Paul Vassilakos lauded Cryptyde’s vision for the future of e-commerce saying: “The Cryptyde team has laid out a distinct roadmap, including tokenized funding and smart contract applications, to complement our technology that harnesses the power of the blockchain to improve e-commerce results and empower the entrepreneur.”
According to the agreement, the transaction is expected to close in the third quarter or early in the fourth quarter of 2022. Cryptyde expects the deal to boost its revenue for the second half of the calendar year.
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