The London-based app that lets users trade bitcoin and several other cryptocurrencies will be bought by Robinhood. The company said that the acquisition will help expand into the U.K. and Europe.
The company stopped plans to launch in the U.K. nearly two years ago.
The shares of the company were up Tuesday.
The deal could provide a boost to the company. The performance has weakened since the trading frenzy last year.
In the fourth quarter of 2021, monthly active users fell to 17.3 million from 18.9 million in the previous quarter, and the company expects first-quarter revenue to be less than $340 million. The company has lost two-thirds of its market value since it went public.
The company's purchase of Ziglu will help us accelerate our global expansion efforts, according to the CEO.
Tenev said in a post that they would work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe.
The acquisition's terms were not disclosed. The deal is subject to regulatory approvals and other customary closing conditions.
Users can make payments, invest in a range of cryptocurrencies, and earn interest on their holdings.
The company has raised a total of $22.8 million to date, including $13.4 million from retail investors through the equity crowdfunding platform Seedrs. It was worth 85 million.
It is one of the few firms that has registered with the U.K. Financial Conduct Authority. Digital asset firms looking to operate in the country need to register.
The deadline was extended after many companies withdrew their applications.
Mark Hipperson is the CEO of Ziglu. He said that the two companies share a common set of goals.
Hipperson said that as part of Robinhood, they will bring better access to the internet and better benefits to millions of customers.
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