VersiFi, a leading cryptocurrency trading and lending firm co-led by a former Genesis executive, has announced its acquisition of Ather Digital, a startup specializing in crypto trading technology. While the terms of the deal remain undisclosed, VersiFi's founder and co-CEO, Sameer Shalaby, revealed that it was structured as an "all-stock" transaction, with all Ather Digital shareholders receiving shares in VersiFi.

Among the notable shareholders of Ather Digital is Manifold Capital Partners, a quantitative investment firm instrumental in the development of Ather's technology to meet the demands of high-frequency trading hedge funds. With this acquisition, Manifold and other Ather investors have transitioned to become minority shareholders in VersiFi.

This strategic move comes on the heels of VersiFi's successful $10 million Series A funding round last November, which saw the firm's entry into the crypto trading and lending space. Additionally, the appointment of Martin Garcia, former Genesis managing director and co-head of trading and lending, as co-CEO further bolstered VersiFi's leadership team.

The acquisition process commenced in December when VersiFi initiated discussions with Ather Digital, culminating in the formalization of the deal earlier this month. Shalaby attributed the decision to acquire Ather Digital to the burgeoning activity and investor interest in the crypto space, spurred by recent approvals of spot Bitcoin ETFs and regulatory developments worldwide.

VersiFi's acquisition of Ather Digital is poised to enhance its platform's capabilities, particularly in the realm of institutional trading, with a focus on expanding from bi-lateral to high-frequency trading. Shalaby underscored the synergies between Ather's direct market access (DMA) offerings and VersiFi's objectives to meet the increasing demands of DMA clients for leverage and borrowing facilities.

Direct market access enables investors to place orders directly on exchange order books, facilitating faster trade execution and catering to high-frequency and algorithmic trading strategies. Leveraging Ather's presence in Abu Dhabi, VersiFi aims to strengthen its international footprint, focusing on offshore markets once regulatory approvals are secured in the UAE.

As part of the integration, Ather's team, comprising approximately a dozen professionals, has joined VersiFi, with Sidharth Sankhe, Ather's founder and chief technology officer, assuming the role of head of quant trading technologies. With a current headcount of about 25 individuals, VersiFi plans to expand its team in Abu Dhabi across trading and operations functions.

Looking ahead, VersiFi has no immediate plans to raise additional capital, signaling its confidence in utilizing existing resources to drive growth and innovation. Advisory support for the deal was provided by law firms Simmons & Simmons, Morgan Lewis, Reitler Kailas & Rosenblatt, and Seward & Kissel, with no involvement of external bankers.