Trading platform Ziglu adds customers with acquisition of Damex arm

A British-based investment and banking app has struck a deal to acquire part of a Gibraltar-based rival that will instantly add tens of thousands of customers to its business.

Sky News understands that Ziglu, which was founded in 2019, has agreed to buy the retail operations of Damex in an all-stock deal.

Its valuation was unclear this weekend.

The deal, which is expected to be announced in the coming days during Gibraltar Finance Week, will enable Ziglu to broaden access to its range of cryptocurrency, investment and banking services.

The enlarged company, which a source said would have close to 200,000 customers, is said to be planning to offer UK and US stock trading for European-based customers in the coming months.

In the spring of last year, Ziglu entertained the idea of putting itself up for sale following the collapse of a takeover of the company by Robinhood, the US-based trading platform.

That deal was expected to value Ziglu at $170m.

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A sale did not materialise, and Mark Hipperson, Ziglu's founder, has since returned as the company's chairman and chief executive.

The fintech is understood to be planning to raise additional funding in the short term as it pursues further acquisitions.

Ziglu declined to comment, while Damex could not be reached for comment.