Strategic acquisitions get priced on revenue multiples but bought for something else: distribution.
Stripe acquired crypto wallet infrastructure company Privy just over a year ago. Since then, revenue is up 9x, monthly active developers tripled, assets in Privy wallets increased 25x, and monthly transaction volume approached $25 billion. Ramp, Deel, Klarna, and thousands of other companies now build on it.
This is the strategic buyer playbook. Privy's standalone revenue at acquisition was likely a rounding error for Stripe, probably sub-$20 million ARR. The deal got priced off revenue multiples because that is how M&A works, but Stripe did not buy it for the current revenue. They bought proof of product-market fit and the ability to scale it through their existing distribution.
Privy is now wired into Stripe Treasury, Link, and Connect. That gives the product immediate access to Stripe's enterprise and platform customer base, companies that would not have purchased standalone crypto infrastructure. The sales motion shifted from selling a point solution to bundling wallet capabilities into products customers already use. Procurement cycles shortened. Adoption expanded.
For founders eyeing strategic exits, this matters. Your current revenue anchors the valuation conversation, but the real pricing driver is how far the buyer thinks they can scale your product through their channels. Stripe paid for Privy's technology, talent, and proof that enterprises want embedded wallet infrastructure. They are getting paid back in distribution leverage.
Worth noting for ANZ readers: there is no indication Privy operates a local sales team or regional office. The route to market here runs through Stripe's established ANZ enterprise presence, not a standalone crypto infrastructure sales org. The acquisition demonstrates why strategic buyers often care more about product adjacency, data, talent, and distribution fit than standalone revenue scale.
Revenue multiples price the deal. Distribution potential justifies it. Both things are true, and understanding the difference gets better outcomes.