Crowdcube and Seedrs have announced plans to merge, where it will create a “more robust” firm.
The joint company will be worth £140m. Crowdcube’s shareholders will own 60% of the group and Seedrs investors will own the remaining 40%.
After the merger is completed, Seedrs boss Jeff Kelisky, will become the chief executive of the combined group whilst co-founder of Crowdcube, Darren Westlake, will be the executive chairman.
Both companies said on Monday in a joint statement that all of the terms had been agreed upon.
Westlake said in a statement: “Today’s agreement is an incredibly exciting milestone that will benefit high growth businesses, their investors who believe in their vision and the wider entrepreneurial ecosystem that supports them.”
“Together with Seedrs, we can accelerate plans to further expand in the UK and overseas, launch innovative new products and improve our customers’ experience.”
Kelisky, who will be the group’s CEO, said: “We believe that you need to be a player of greater scale to serve companies and the investors who support them,” Kelisky said in a statement. “Now is the right time to bring our strengths together, in order to meet our common mission to deliver a step change in the accessibility and efficiency within private company investing.”
The deal is expected to be completed in early 2021 subject to approval from shareholders.