German automobile maker BMW is buying the shares of BitGo in a $1.2 billion deal, a move that will give it a foothold in the nascent blockchain market.
BitGo, the first company to provide blockchain technology to car companies, raised $5 million in a Series A round in February, and the transaction closes Monday.
BitGo plans to merge with the German company’s automotive unit, and its board will consist of nine of its members, with the remainder of the board appointed by the German government, according to a company statement.
The move, which is subject to regulatory approval, will enable BitGo to expand its automotive operations and provide customers with access to a platform to build, operate and operate their own cars in a global network of connected cars, the statement said.
The company’s CEO Ulrich Wagner said in a statement that the transaction was motivated by the growing need for automotive technology.
“We will work with BitGo as we always have to develop a new way of working with blockchain,” he said.
Bitgo’s board, made up of nine directors, will include BitGo CEO Ulrick Wagner, who is also a member of the Bundestag, Germany’s lower house of parliament, as well as members from other companies, the company said.