Apex will provide up to $850m of gross cash proceeds, and become a publicly listed company on the New York Stock Exchange
Digital wealth management provider Apex Clearing has agreed to merge with Northern Star Investment Corp. II, a publicly traded special purpose acquisition company, in a deal that could value the merged entity at $4.7bn.
Upon closing, Apex is expected to provide up to $850m of gross cash proceeds and become a publicly listed company on the New York Stock Exchange (NYSE).
The gross cash proceeds are based on assuming no redemption of Northern Star’s existing public stockholders and excluding debt repayment and transaction expenses.
Apex said that its rapid, secure and reliable digital custody and clearing platform Apex Clearing supports the transformation of the financial services industry.
Apex CEO William Capuzzi said: “Apex combines modern technology, operational excellence, risk management, compliance and discipline to deliver dynamic, seamless and secure custody and clearing solutions for our global clients.
“Today, our business encompasses a comprehensive platform applying these founding principles to the full financial services spectrum.
“We are in the first inning of the digital revolution in financial services, and our merger with Northern Star will provide Apex with the resources and flexibility to accelerate our growth, scale our platform, and expand our offerings and market share alongside our clients.”
Once the transaction is closed, the combined company will be led by the Apex CEO William Capuzzi, and president Tricia Rothschild will continue in their current roles
The leaders will be supported by a talented management team, with expertise in building financial services and technology businesses.
Northern Star Chairwoman and CEO Joanna Coles, a creative media and technology executive, will be appointed to the combined company’s board of directors.
Apex offers instant account opening and funding, execution of trades across different asset classes, digital assets, along with trade settlement and the safekeeping of customer assets to its clients.
Its clients include online brokerages, traditional wealth managers, wealth-tech, professional traders, and consumer brands, and others.
Apex president Tricia Rothschild said: “Apex’s focus on the core tenets of trust and innovation have enabled us to develop a secure and robust platform that provides seamless trading access to retail and institutional investors alike.
“Custody and clearing is not only a high cost of entry business, but also, more importantly, it is a high cost of failure business, and our clients and their customers depend on Apex to safeguard their assets.
“We look forward to continuing to fulfil this obligation as the digital infrastructure partner of choice for both established and emerging financial services companies navigating the markets of today and tomorrow.”