PolySign to Buy Digital Asset Fund Administrator MG Stover for Cash and Stock

Digital asset infrastructure company PolySign has agreed to buy fund administration firm MG Stover for a mix of cash and stock, PolySign said Wednesday. Terms of the deal were not disclosed.

MG Stover services hedge funds, private equity and venture capital funds and has over $40 billion in digital assets under administration. The company has developed a focus on digital assets as the sector grows.

This acquisition will allow PolySign to build on its suite of custody offerings while also adding an element of fund administration services to institutional investors, the company said.

Besides this deal, PolySign is also completing a Series C fundraising round with the addition of new investors including Soros Fund Management, Brevan Howard and GSR. Cowen Digital, which had taken a $25 million stake in PolySign last May as part of a Series B funding round, will add to its existing equity position.

“MG Stover is the ‘go-to’ administration partner for many of the most sophisticated and successful investors in digital assets,” PolySign CEO Jack McDonald said in a statement.

Meanwhile, MG Stover’s CEO Matt Stover said in the statement that “joining the PolySign team is going to bolster our core fund administration offering and enable us to develop new capabilities that will shape the way institutions engage in digital assets for years to come.”

PolySign expects the MG Stover deal to close in the second quarter of this year.

Read more: Investment Bank Cowen Launches Digital Unit, Aims to Compete With Bulge-Bracket Firms