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IN BRIEF: IG Group CEO and CFO buy shares following annual results
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The deal comprises $300 million in cash and the issuance of 61 million IG shares to Tastytrade’s shareholders, according to a statement. The combination would add Tastytrade’s more than 105,000 active accounts to IG’s platform, whose core markets include the U.K., European Union, Australia and Singapore.
Chicago entrepreneur Tom Sosnoff launched Tastytrade in 2011 as a media and brokerage business. It added its Tastyworks brokerage arm in 2017 after breaking away from early investor and partner Omaha-based TD Ameritrade.
IG shares fell as much as 6.3% Thursday before trimming the decline to 4.3% at 1:10 p.m. in London. The firm is paying a “very punchy” price for the acquisition, Canaccord Genuity analyst Justin Bates said by email. Tastytrade’s growth rate is currently benefiting from the “supernormal” contribution of market volatility in 2020, he said.
IG’s $1 Billion Bet on Tastytrade Seen as Pricey; Shares Fall
Bloomberg 1/21/2021 Joe Easton and Tom Metcalf
(Bloomberg) IG Group Holdings Plc shares fell the most in five months after it agreed to buy Chicago-based online brokerage Tastytrade Inc., with analysts raising concerns over the $1 billion cost of its bet that U.S. retail investors will embrace derivatives.
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The deal comprises $300 million in cash and the issuance of 61 million IG shares to Tastytrade shareholders, according to a statement. The combination would add Tastytrade’s more than 105,000 active accounts to IG’s platform, whose core markets include the U.K., European Union, Australia and Singapore.
IG’s $1 Billion Bet on Tastytrade Seen as Pricey; Shares Fall
Bloomberg 1/21/2021 Joe Easton and Tom Metcalf
(Bloomberg) IG Group Holdings Plc shares fell the most in five months after it agreed to buy Chicago-based online brokerage Tastytrade Inc., with analysts raising concerns over the $1 billion cost of its bet that U.S. retail investors will embrace derivatives.
Popular Searches
The deal comprises $300 million in cash and the issuance of 61 million IG shares to Tastytrade shareholders, according to a statement. The combination would add Tastytrade’s more than 105,000 active accounts to IG’s platform, whose core markets include the U.K., European Union, Australia and Singapore.
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