Chain Inc., one of the largest players in the blockchain space, has been recently acquired by Lightyear Corporation, a global payment network that runs on the Stellar blockchain. The acquisition will create a new entity called Interstellar, which will handle the merged operations of both companies.
All-Cash Deal but Amount Still Unknown
Lightyear’s acquisition of Chain was announced on Monday, Sept. 10, by Chain CEO Adam Ludwin, according to a Reuters report. Ludwin said that negotiations for the deal actually started late last year but was only finalized last week.
While both companies confirmed the deal’s closure, neither party divulged the amount involved. What is known at the moment is that it is an all-cash deal, according to Forbes. Ludwin further hinted that the amount is “significantly more than $40 million” as Chain “has had millions in revenue and millions of dollars in the bank” to begin with.
As Ludwin explained:
“Chain did not need to sell the company. This needed to be a great strategic move and a great return and it was both.”
Ludwin will become the CEO of the new entity, Interstellar. Meanwhile, Stellar creator Jed McCaleb will be its chief technical officer. The company will initially have 60 employees and will have its headquarters in San Francisco with offices in New York City.
Private to Public Blockchain
Clients serviced by Chain Inc. — which include some of the biggest companies in the world — will move from Chain’s private blockchain to Stellar’s global public ledger as they are now Interstellar clients. These include Visa, Nasdaq, Citigroup, Cloudwalk and French insurance firm LPS.
“We were looking for a way to help our customers move the projects that we have been working on from a private network to a public one. When we started a few years ago, our customers were not ready for a public network. Fast forward to three years, they’re willingness has gone up, and the maturity of the public networks has changed a lot.”