UK online brokers IG to buy U.S. peer tastytrade for $1 bln (updated)
21/01/2021 07:54
(Adds details from statement)
Jan 21 (Reuters) - London-listed trading platform IG IGG.L
laid out a planned $1 billion cash and shares deal to buy U.S.
peer tastytrade on Thursday, taking a step into North American
markets after a stellar year for the new breed of retail
investment brokerages.
Coronavirus-driven volatility has driven a surge in revenue
and profit for IG and UK rivals including CMC Markets CMCX.L
and Plus500 PLUSP.L , while in the United States making a major
name out of Robinhood.com and its easy app-based trading.
Tastytrade shareholders will receive $300 million in cash
and 61 million IG shares, valued at $700 million, IG said on
Thursday, making it by far the company's biggest ever
acquisition.
It said Tastytrade had over 105,000 active trading accounts
and some 900,000 unique registrations.
Robinhood said last May it had 13 million user accounts and
was valued at $11.2 billion as of December, after a year which
has seen herd behaviour by traders on the app cited as a factor
in surges in the value of a number of U.S. companies.
Tastytrade's senior leadership will stay on 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
waited almost 10 years until we found the right partner and
perfect match," Co-CEO of tastytrade Tom Sosnoff said.
(Reporting by Indranil Sarkar and Muvija M in Bengaluru;
Editing by Krishna Chandra Eluri and Patrick Graham)
((Indranil.Sarkar@thomsonreuters.com; Mobile: +91
7022132226;))