In May Bitcoin Magazine reported on the European expansion initiatives and plans of two European Bitcoin startups, Coinify and Coinzone, respectively based in Denmark and The Netherlands.
“We expect to raise [funds] to make sure that Europe will be playing a leading role in this new payment space,” said Coinify Chief Financial Officer Christian Larson.
“Growing European demand for Bitcoin means more and more consumers want a simple and secure way to transact,” said Coinzone co-founder and CEO Manuel Heilmann. “Our aim is to make it easy for European consumers to do more with bitcoin.”
Both companies expressed the need for Bitcoin solutions tailored to European users. In particular, some aspects of European regulations, both national and European Union (EU) -wide, must be addressed – for example, consumer protection and data privacy regulations.
Now the two startups have decided to join forces. A press release published on the Coinify site announces that Coinify will be taking over the operations of Coinzone. Coinzone will bring development and volume to the table, and this new partnership will result in a number of new opportunities for customers of both platforms.
“We welcome aboard Coinzone’s merchants and partners to Coinify, and will make sure that we continue the good work of Coinzone,” said Coinify CEO Mark Højgaard. “Coinzone has done a remarkable job, especially considering its short time in the market.”
Coinify is no newcomer to acquisitions. In September 2014, after securing a multi-million capital injection by SEED Capital and Accelerace Invest, the company purchased technologies and the customer base from the trade platform Bitcoin Nordic and the merchant services pioneer Bitcoin Internet Payment System. Coinify is now preparing for a new series A investment round.
“We reached out to Coinify as we believed that we could strengthen the position of a European-based Bitcoin provider,” said Heilmann on the Coinzone side. “Coinify has a strong financial management team, supportive investors behind it, and together with the strong position that Coinzone has built over the last few years, we look forward to even more growth with Coinify.”
The acquisition marks an acceleration in the trend toward consolidation of Bitcoin services in Europe and the emergence of a global European operator. Though both companies had a presence in most European countries, Coinzone was stronger in certain countries, which likely is one of the main reasons for the acquisition.
“Coinzone’s established presence in Europe, especially in the most active countries of France, Germany, Spain, Italy and Romania, and the recent market entries in the U.K., the Czech Republic and Poland, is 100 percent in line with our strategy to accelerate the expansion in these important markets,” said Coinify CFO and Head of Strategy Christian Visti.
Another reason for the acquisition is likely to be the synergy between the two companies’ focuses. In fact, the move will permit Coinify to offer a solid payment gateway technology to its growing merchant client base.
“Coinify is taking the lead in the current battlefield with a strong belief that Coinify will be among the top players in the world dealing with cryptocurrency infrastructure for online merchants through a PSP tailored solution,” said Richard Breiter for SEED Capital, one of Coinify’s funders. “The Coinify team has done an amazing job, pushing past milestones and achievements beyond our expectations.”