US-based financial services platform Forge Global Holdings has signed a non-binding term sheet to acquire asset management firm Accuidity Capital Management.
The proposed acquisition aims to strengthen Forge’s asset management capabilities and expand its investment product offerings.
Accuidity specialises in private investing and manages the Megacorn Fund, which seeks to replicate the performance of the Forge Accuidity Private Market Index.
The proposed acquisition involves an initial purchase price of $10m in cash, subject to adjustments, and 1.15 million shares of Forge common stock.
Among the 1.15 million shares, 483,333 shares will be subject to employment-related vesting criteria.
In addition, Accuidity’s equity holders may receive up to one million additional shares based on specific operational and revenue milestones by the end of 2027.
The merger is expected to enhance Forge’s revenue streams and assist in achieving Adjusted EBITDA breakeven by 2026.
The non-binding term sheet includes an exclusive negotiating period, subject to customary due diligence and the negotiation of a definitive merger agreement.
The agreement will include covenants, closing conditions, regulatory approvals, indemnification provisions, and termination rights.
It will potentially provide Forge with a comprehensive set of investment products and private wealth solutions for its global client base.
Forge Securities is a registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA) and operates an alternative trading system.
