Crypto lending giant Nexo has made an exclusive move to acquire up to 100% of the smaller crypto lending rival, Vauld Group.
As reported by The Block, Nexo, based in London has signed an indicative term sheet with the embattled firm and has about a 60 days window to conduct due diligence to see whether Vauld Group’s business can be restructured and returned toward profitability.
“We have to see what exactly is on their books and it’s going to take a little while,” Nexo co-founder Antoni Trenchev said in an interview. “But since we have the exclusive exploratory period, we are the only ones looking at them right now.”
Vauld Group suspended key activities on its platform as announced by TheCoinRise earlier this week. While joining the likes of Celsius Network and Babel Finance, the startup said it has recorded over $197 million in withdrawals since the news of the UST collapse broke, a situation that has largely complicated its efforts to keep up operations.
Nexo-Vauld Acquisition Dynamics
While the news of Nexo is out in the open, withdrawals on the Vauld platform remain halted for now. The acquisition of the Vauld group is dependent on how the ongoing due diligence process goes. According to Trenchev, the extent of the firm’s investments, balance sheet deficit and the likes will depend on whether it will restructure or refinance the startup or not.
“We have to view it in the overall context of if we step in, can we restructure the business so that it is functioning again, so that it is profitable within the Nexo umbrella, which as a company is profitable, and whether we can accumulate that,” Trenchev said.
The proposed acquisition seems to be in the interest of both companies as the Vauld Group has a strong presence in India and key Asian markets which are of great importance to Nexo. With the acquisition, Vauld Group will get to keep its brand and gain massive backing from an industry giant as it looks toward surviving this crypto winter.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions,” Darshan Bathija, co-founder and CEO of Vauld Group said in a statement.
Nexo had previously offered to relieve Celsius Network by purchasing some of its liabilities. The offer was not accepted within the stipulated time frame.