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SAN FRANCISCO - Forge Global Holdings, Inc. (NYSE: FRGE), known for its private market marketplace infrastructure, data services, and technology solutions, has announced a potential merger with Accuidity Capital Management, a specialized asset management firm. According to InvestingPro data, Forge currently has a market capitalization of $108.38 million and has seen its stock decline 38% year-to-date. This non-binding agreement, if finalized, could see Forge acquiring all outstanding equity interests of Accuidity.
Accuidity, which manages the innovative Megacorn Fund—an index fund designed to track private, late-stage growth companies—has recently sought SEC registration to expand investor access. The proposed merger terms include a $10.0 million cash payment and 1.15 million shares of Forge common stock upon closing, with additional shares contingent on Accuidity meeting specific milestones through 2027. InvestingPro analysis suggests the stock is currently undervalued, with 11 additional ProTips available to subscribers providing deeper insights into the company’s financial health and growth prospects.
This strategic move aims to bolster Forge’s asset management offerings and provide a broader range of investment products and private wealth solutions to its global client base. While the company reported revenue growth of 13.62% in the last twelve months, its EBITDA remains negative at -$74.35 million. Forge anticipates that the acquisition would contribute positively to its earnings per share (EPS) and be a transformative addition to its revenue streams, fostering new recurring revenue and supporting its goal of reaching Adjusted EBITDA breakeven by 2026. For comprehensive analysis of Forge’s financials and growth potential, access the detailed Pro Research Report available on InvestingPro.
The terms outlined in the non-binding term sheet grant Forge an exclusive negotiation period with Accuidity. However, the completion of this deal is contingent upon due diligence, regulatory approvals, and the execution of a definitive merger agreement, which has yet to be finalized. As such, there is no guarantee that the acquisition will proceed as currently proposed. Notably, Forge maintains a strong liquidity position with a current ratio of 4.74, indicating sufficient resources to meet its short-term obligations.
Forge’s forward-looking statements regarding the potential acquisition reflect expectations as of today but are subject to various risks and uncertainties that could cause actual outcomes to differ. The company has emphasized that these statements should not be relied upon beyond today’s date.
Investors are reminded that this announcement is based on a press release statement and that the information presented, including financial measures like Adjusted EBITDA, is not in accordance with GAAP and should not be considered in isolation for evaluating Forge’s performance.
In other recent news, Forge Global Holdings Inc reported preliminary financial results for the first quarter of 2025, showcasing a significant increase in revenue. The company expects total revenues, after transaction-based expenses, to range between $24.9 million and $25.1 million, marking its highest revenue quarter since going public. This performance exceeded JMP analysts’ estimates by $6.1 million and surpassed the median consensus by $3.7 million. Additionally, UBS analyst Alex Kramm adjusted Forge Global’s price target from $3.00 to $2.00, maintaining a Buy rating despite acknowledging uncertainties in the company’s growth trajectory. Forge Global also announced a 1-for-15 reverse stock split to comply with NYSE’s minimum bid price requirements. Furthermore, Forge Global has partnered with Yahoo Finance to provide real-time data for private companies, enhancing investor access to private market opportunities. The company is also transitioning its auditing services from Ernst & Young to KPMG, effective March 14, 2025. These developments indicate Forge Global’s strategic steps to strengthen its market position and financial stability.
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