Online retailer Overstock.com Inc.'s blockchain subsidiary tZERO said Dec. 22 that it will acquire a 24% stake in financial services and depository trust and clearing firm StockCross Financial Services Inc. for $12 million.
Per the terms of the letters of intent signed between the two companies, upon closing StockCross shareholders will reinvest $3 million of the $12 million into StockCross for "forward strategic investments." Further, tZERO will be entitled to a one-time distribution of about 1.2 million shares of Siebert Financial Corp. as part of a previously signed agreement between Siebert and StockCross on May 8.
Patrick Byrne, CEO of Overstock.com and chairman of tZERO, said in a news release that the investment is "the first step toward integrating a clearing function into the tZERO ecosystem."
Previously, tZERO entered a letter of intent to buy a 1% stake in Siebert's parent, Kennedy Cabot Acquisition LLC.
The transactions are expected to be completed in the first quarter of 2018. Following the completion of these transactions, tZERO portfolio companies will own about a 5% stake in Siebert.