2020 has proven to be the year of crypto M&A, with over $ 600 million spent on 60 transactions in the first half of the year. Many of these deals come from industry titans like Coinbase who have bought up ancillary products and services. What is less common is the merger of two established and live blockchain companies.
LTO Network and VIDT have officially announced that they will merge, creating what is currently the largest blockchain company in the Netherlands. Specifically, the merger will bring together two companies that are dedicated to providing B2B blockchain solutions for companies. The merger comes just two weeks after LTO Network announced its partnership with the United Nations to add land parcels to the blockchain.
Both companies are well-known and currently ranked in the top 250 blockchain companies based on market capitalization. LTO network technology gives developers a common platform to build innovative applications without worrying about the blockchain back-end and front-end to make them work. Their system also enables them to be integrated with their customers’ already functioning legacy systems.
VIDT Datalink, on the other hand, is a blockchain-based platform for document certification. With the VIDT API, companies can certify their digital data and protect it against fraud and manipulation. With VIDT’s Datalink architecture, VIDT Datalink is compatible with virtually any existing system to ensure data integrity without compromising workflow.
LTO Network’s vertical expertise, size, and development toolkit for decentralized workflows will help VIDT Datalink scale and instantly reach more partners and customers. For LTO Network, VIDT brings its know-how in proprietary solutions and open source API interfaces for companies that use these to anchor and review documents. In addition, VIDT often works with NTFs that ensure the validity of valuable goods and thus help prevent fraud.
The strategic merger is supported by a long work history
For LTO and VIDT, the relationship between the two Dutch companies is profound as the founders have a personal friendship and a track record of working together, e.g. These include providing digital certificates, securing sensor data at IBM, and providing file authentication for multiple companies like AmSpec. NEN and many others.
The merger will provide a foundation for a political and strategic fulcrum that combines the presence of VIDT Datalink as a member of DBC and LTO Network as a member of Techleap. This can help expand the reach of potential customers across the spectrum of work and social platforms. In addition, the new company will share strategic resource management and a central location to save costs.
According to the official release, the merger is also a starting point for a much bigger goal. Rick Schmitz, CEO of LTO Network, says: “Data is one of the most valuable resources in the world. The combination of LTO Network Data Integrity Solutions combined with VIDT’s technologies creates a strong confidence for both companies to achieve top 15 blockchain business status and an overall glorious future. “
How the merger will affect token holders and operations
One of the most common issues with live trading company mergers is what will happen to the existing tokens. In this case, the tokenomics will change for both projects. However, the token supplies will remain unchanged, and their supplies, communities and teams will remain unchanged. VIDT’s Total Value Locked (TVL) (all transactions) now goes entirely to LTO rather than other blockchains, resulting in expected network growth for LTO.
Further financial updates and new tokenomics will be released by both teams shortly.