Stock trading startup Public has acquired Carta's secondary brokerage account business, TechCrunch has confirmed.
Carta, best known for its cap table management software, has amassed a lot of data. The company was trying to move into the booming secondary marketplace securities trading business when in January a startup client publicly accused Carta of using the startup's private cap table data to approach shareholders and broker a sale without the startup's knowledge. The allegations spread, spooking many of Carta's clients and threatening to leave.
Days later, Carta announced it was abandoning the business, and Axios previously reported that the company has now found a buyer in Public.
Public said in an emailed statement to TC that clients of Carta Capital Markets, which it acquired, have the right to opt out. Carta, however, said it is not exiting the secondary business entirely. It will continue to offer “company-sponsored secondary offerings, including tender offers,” through its SEC-registered transfer agent.