GSTechnologies Ltd (LSE:LON:GST)’s wholly owned subsidiary, GS Fintech UAB, has entered into a business purchase agreement to acquire CAKE's business and assets, including the Bake cryptocurrency platform.
The acquisition aligns with GST's strategy to enhance the international reach and technological capabilities of its GS20 Exchange.
CAKE, a cryptocurrency investment platform founded in 2019, boasts a strong presence in the DACH region (Germany, Austria, Switzerland) and a user base of 700,000 registered users, including 50,000 active crypto users holding approximately $80 million in digital assets as of November 30.
The acquisition includes CAKE's IT infrastructure, intellectual property rights and the bake.io domain and associated services.
Acquiring CAKE will add 50,000 active users to GST's GS20 Exchange, bolstering its user base and expanding the platform's capabilities for cross-border cryptoasset and fiat currency transactions.
GST intends to integrate key personnel from CAKE into its operations to ensure continuity, with the majority of CAKE employees based in Singapore.
Tone Goh, Chairman of GST, stated: "The acquisition represents a transformative opportunity for the GS20 Exchange and GST as a whole.
“By integrating CAKE's business, we aim to deliver a more comprehensive and robust suite of services to a growing user base, particularly in Europe.
“The combined capabilities of the GS20 Exchange and the acquired Bake platform will not only enhance customer experience, but also create long-term value for our shareholders."
The acquisition is expected to complete on January 2, 2025, with GST funding the transaction entirely from its cash reserves.