​​ Robinhood cut an offer to buy Ziglu Robinhood has written | Altcoin Holder

​​ Robinhood cut an offer to buy Ziglu

Robinhood has written down its offer to acquire British fintech company Ziglu, reducing the originally proposed deal from $170 million to $72.5 million, in turbulent times for crypto startups.

Ziglu CEO Mark Henderson told The Block that the new deal was signed and approved by the company's board and shareholders. He called it "the best deal for all stakeholders, especially customers."

Following earlier reports, he also confirmed details in documents sent out to the company's investors on crowdfunding platform Seedrs that the U.S. fintech giant has written down the size of the deal.

"Robinhood reached out to the Company the week of July 18, 2022 and clearly communicated to the board that for a number of reasons described below, it does not now intend to close the deal on the terms of the previously agreed upon SPA," Henderson said in a letter to shareholders on Seedrs.

"Robinhood cited a number of reasons for this change, including the overall (winter) cryptocurrency market negatively impacting valuations by 50-90%, the impact on valuations of notable disruptions including Celsius, BlockFi and Voyager, and current macroeconomic and geopolitical risks."
The deal was widely seen as Robinhood's entry into the U.K. market after canceling its 2020 launch.

"As we look to expand internationally, we are pleased to announce that we have signed a deal to acquire Ziglu Limited, a UK-based e-money and crypto-asset company," said Robinhood CEO, Vlad Tenev, announcing the deal on his blog.

The news comes amid fluctuations in the crypto mergers and acquisitions market. On Monday, investment firm Galaxy Digital terminated its acquisition of cryptocurrency custodian BitGo. The next day, crypto-miner Prime Blockchain and 10X SPAC canceled a $1.25 billion merger deal.