(Reuters) – London-listed trading platform IG unveiled a planned $ 1 billion cash and stock deal Thursday to buy tasty US peer exchanges, stepping into North American markets after a stellar year for the next generation of retail investment intermediaries.
Coronavirus-driven volatility has led to increased revenue and profits for IG and UK rivals including CMC Markets and Plus500, while in the US it has made a big name for itself on Robinhood.com and its easy trading based on app.
Tastytrade shareholders will receive $ 300 million in cash and 61 million shares of IG, valued at $ 700 million, IG said Thursday, making it by far the company’s largest ever acquisition.
It said Tastytrade had over 105,000 active trading accounts and around 900,000 unique registrations.
Robinhood said last May that it has 13 million user accounts and was valued at $ 11.2 billion in December after a year that saw herd behavior by merchants on the app cited as a factor in increasing the value of a number of US companies.
Tastytrade’s senior leadership will remain after the merger, which the two companies hope to complete in the first quarter of the next financial year.
“While our long-term goal has always been to go global, we have waited nearly 10 years to find the right partner and the perfect match,” said Tastytrade co-CEO Tom Sosnoff.
Reportage by Indranil Sarkar and Muvija M in Bengaluru; Montage by Krishna Chandra Eluri and Patrick Graham