IG Group Holdings plc revealed it has finalized $1 billion partnership with fast-growing online brokerage and investor education platform tastytrade, Inc.
The online trading company expects the transaction to significantly increases the scale and relevance of its existing US business. IG will now be in a good position in the high-growth retail options trading market through tastytrade’s online brokerage and trading education platform. tastytrade’s platform is used by more than 105,000 self-directed investors with active accounts. IG’s global reach provides tastytrade with a platform for international expansion.
June Felix, Chief Executive of IG, commented:
June Felix
This transaction marks an important milestone in the delivery of IG’s growth strategy, diversifying our product offering and significantly strengthening our global footprint.
tastytrade offers something that is completely new: it has truly disrupted the market by combining content that is unique and entertaining with deeply quantitative and technical analysis. This transaction will significantly enhance client choice and opportunity as we focus on providing innovative educational content, a broad suite of products and tools to empower their financial decision making and give them the best possible trading experience.
The official announcement said that up to $300 million of the transaction is in cash and 61,000,000 new ordinary in IG Group will be issued to tastytrade shareholders.
Tom Sosnoff, Founder and co-CEO of tastytrade, said:
Tom Sosnoff
The completion of this deal is a milestone moment for tastytrade. For the past decade, we have worked tirelessly to build a trading ecosystem that challenges self-directed retail investors to think and trade strategically. Our partnership with IG gives us the opportunity to contribute this expertise as part of a global offering that reflects the scope of our ambitions.
Kristi Ross, co-Founder and co-CEO of tastytrade, said:
Kristi Ross
The synergies between tastytrade and IG are clear. Together, our mission is to deliver a sophisticated, first-in-class trading experience that puts our clients at the heart of all we do. This distinctive, differentiated offering will allow IG and tastytrade to capitalise on the long-term, structural democratisation of global financial markets.
Approximately 1.5 million retail traders take part in the US options and futures market. It is larger than the CFD/FX and European Turbo markets combined. The new partnership between IG and tastytrade will be poised to take advantage of the structural growth of self-directed investing in the US.
The deal is not going to affect the management teams for IG and tastytrade and they weill remain. Essential tastytrade management shareholders, including Tom Sosnoff (Co-CEO, tastytrade), Kristi Ross (Co-CEO and President, tastytrade), Scott Sheridan (CEO, tastyworks) and Linwood Ma (CTO, tastytrade), have joined the IG senior leadership team.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
