MetaCap Inc. Acquires MCAP Technologies LLC, a Financial Technology Software Developer and Leading Electronic Market Maker
MetaCap Inc. has acquired MCAP Technologies LLC in an all-stock transaction effective November 10, 2021. The acquisition, approved by MetaCap's Board, has resulted in current MTEC equity holders becoming majority shareholders. The merger aims to enhance technology-driven financial services and leverage existing infrastructure for market expansion. The combined company reported trailing 12-month revenue of approximately $75 million and EBITDA of $20 million. David Menn will serve as CEO of the new entity, with Rick J. Makoujy Jr. retaining a non-executive board position.
- Acquisition enhances MetaCap's position in technology-driven financial services.
- Combined company reported $75 million in revenue and $20 million in EBITDA over the last 12 months.
- Majority shareholders are now MTEC equity holders, indicating strong investor confidence.
- MetaCap issued additional shares for the acquisition, potentially leading to shareholder dilution.
NEW YORK, NY / ACCESSWIRE / November 10, 2021 / MetaCap Inc. (OTC PINK:MCAP) ("MetaCap") has acquired MCAP Technologies LLC ("MTEC"), effective today, in a non-cash equity exchange transaction. The acquisition has been approved by the Board of Directors of MetaCap and the Managers of MTEC.
The current MTEC equity holders have become the majority shareholders of the combined company. This acquisition underscores MetaCap's commitment to investments in technology-enhanced financial services. MTEC's institutional customers will continue to have access to the complete suite of trading software and electronic market making services, including the global transparency and liquidity solutions that all leverage MTEC's technology infrastructure.
"Our focus and investment in technology and customer-facing businesses has shown strong growth and is evidenced by the continued expansion across multiple business lines. Over the past five years we have seen significant revenue and EBITDA growth. We look forward to continuing our growth as a combined company," said David Menn, MTEC's Chief Executive Officer.
"With the considerable growth that we have seen in our businesses, this merger is the next step and a natural progression for our two companies. The merger is part of our strategic plan not only to grow our core businesses, but also leverage our existing technology infrastructure and client base to expand into new products and services. We are excited to have found such a great partner in MetaCap and look forward to growing the business together," said William Dennis, MTEC's President.
"We are thrilled to have found such a dynamic and growing partner in the perfect space, with tremendous leadership," stated Rick J. Makoujy, Jr., who will step down as President but maintain a non-executive board seat. "MCAP Technologies has been hitting on all cylinders. We are extremely proud to bring this excellent value to our shareholders."
Transaction Terms, Approvals and Timing
Effective today, MetaCap has funded the all-stock transaction with the issuance of additional shares. MetaCap has completed the divestment of its real estate holdings and any outstanding mortgages in order to satisfy the closing requirements. Effective today, there are approximately 23.5 million fully diluted shares outstanding.
Organization and Leadership
David Menn, Chief Executive Officer of MTEC, will become CEO and a board member of the combined company. William Dennis, President of MTEC, will become the President and a board member. Rick J. Makoujy Jr., MetaCap's current President, will step down as President but maintain a non-executive board seat of the combined company.
About MetaCap Inc.
The combined company has three subsidiaries: MCAP Technologies LLC, MBIT LLC and MCAP LLC. MCAP Technologies LLC is a financial technology company that develops software utilized in various financial markets. MBIT LLC is a digital asset company focused on crypto-currency, DeFi protocols and blockchain integration in the global financial markets. MCAP LLC is an SEC-registered and FINRA member broker-dealer focused on electronic securities market making. MCAP LLC connects institutional investors, broker-dealers and companies to the global equity and fixed income markets. MCAP acts as a principal and utilizes proprietary technology to provide executable prices on various platforms, exchanges and market centers to improve market liquidity, to increase execution speed and to foster greater transparency. MCAP Technologies also provides institutional customers with customized trading solutions and unique global market access. MCAP Technologies had trailing 12-month revenue and EBITDA of approximately
Advisors
Paykin, Krieg & Adams LLP is serving as MTEC's legal counsel. Heimerl Law Firm is serving as MetaCap's legal counsel.
For additional information about MetaCap, contact Brooke Pagano, Public Relations, at (845) 270-5792 or Info@metacaptech.com.
Please visit our website at www.metacaptech.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The matters discussed in this news release involve goals, forecasts, assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.
SOURCE: Mango Capital, Inc.
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FAQ
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