On Friday, judgment came through on the legal case between blockchain startup Symbiont and IPREO. Before the acquisition of IPREO by IHS Markit in 2018, IPREO and Symbiont set up a joint venture, Synaps, which aimed to use blockchain to transform the notoriously inefficient secondary market for syndicated loans.
IHS Markit has the dominant position in the sector with a 99% market share with its ClearPar solution. The judge found IHS Markit’s acquisition of IPREO breached a non-compete agreement signed between Symbiont and IPREO.
As damages, the joint venture Synaps was awarded the profits of IHS Markit’s ClearPar solution. Those amounted to $142 million after tax for the period starting on the IPREO acquisition date, 2 August 2018, to 30 September 2020. Damages were awarded through 30 November 2020, so the figure will be higher. However, the joint venture has some liabilities and needs to be dissolved, so Symbiont stands to gain roughly $70 million for its half share. Symbiont has raised $43 million in equity funding to date.
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