Newly public Troika Media Group has closed on the acquisition of financial technology platform Redeeem, which empowers businesses to digitize assets and build their own blockchain-based payment solutions.
Through its wholly-owned subsidiary, Redeeem Acquisition Corp., TMG acquired the assets and approximately $165,000 in liabilities for $1.21 million in cash and $10.89 million in TMG common stock that will vest over three years.
TMG intends to integrate Redeeem’s products across its media services, working with new and existing brands to offer non-fungible token (NFT) capabilities, crypto payment APIs, mobile payment expertise, and other revenue-generating products capable of deploying digital tokens throughout TMG’s expansive network of brands.
TMG is adding 10 new employees in the purchase of Redeeem, including founder and CEO Kyle Hill who brings five-plus years of experience in blockchain and 15-plus years of experience in technology startups, having served for eight years as the founder/CEO of home care marketplace HomeHero. Since its 2018 launch, Redeeem has processed more than $10 million in crypto payments and manages more than $1 million a month in trading volume.
“We believe this is a game-changing transaction for both companies and achieves unique and complementary strategic objectives of taking the Company into the new digital era,” said Robert Machinist, Troika’s chairman and CEO in a statement. “The acquisition of Redeeem increases our ability to significantly grow revenue and strategic opportunities to enhance the core businesses of TMG by immediately positioning the company as a go-to expert in the NFT and crypto space, particularly in our sports, gaming, and entertainment business, where we will provide brands new opportunities to foster fandom through NFT integration. The combined offering of TMG’s existing portfolio of services, extensive client network, and operational scale with Redeeem’s highly innovative platform, supports our long-term strategic vision of utilizing transformative technology to create additional revenue opportunities for the global brands we partner with every day.”