Forge Global Eyes Strategic Expansion With $10 Million Accuidity Acquisition

Author: Akanksha Bakshi | April 17, 2025 09:38am

Forge Global Holdings, Inc. (NYSE:FRGE) announced a potential acquisition of Accuidity Capital Management on Thursday. The non-binding term sheet outlines a merger where Forge would acquire 100% of Accuidity’s equity interests.

The deal includes $10 million in cash and 1.15 million shares of Forge common stock at closing, with 483,333 shares subject to employment-related vesting. Additionally, a post-closing earn-out could result in up to one million more shares, contingent on milestones by 2027.

Accuidity, a specialized asset management firm, offers private investment products like index-tracking products, co-investment vehicles, and early-stage venture funds. Its Megacorn Fund tracks the Forge Accuidity Private Market Index and has applied to the SEC for registration as a publicly traded index fund to expand access to non-accredited investors.

Forge expects the merger to enhance asset management and provide more investment products to its global client base. If completed, the acquisition is expected to be accretive to earnings per share (EPS), generate new recurring revenue, and accelerate Forge’s path to breakeven on Adjusted EBITDA by 2026.

Forge held cash and cash equivalents and short-term investments totaling $93.1 million at March 31, 2025.

On Wednesday, Forge Global Holdings implemented a 1-for-15 reverse stock split, which took effect on April 14, 2025. The move, approved by shareholders at a special meeting on March 27 and authorized by the company’s board on March 28, consolidated every 15 existing shares into one new share. Trading on a split-adjusted basis began on April 15, reducing Forge’s outstanding common shares.

Price Action: FREG shares are trading higher by 2.08% at $8.82 premarket on the last check Thursday.

Photo: Shutterstock

Posted In: FRGE