By Sabela Ojea
IG Group Holdings PLC said Thursday that it has proposed to acquire the U.S. online brokerage and trading-education platform Tastytrade Inc. for a total consideration of $1 billion, comprising $300 million in cash and the issuance of 61 million of IG shares valued at $700 million.
The online-trading company said the acquisition would significantly increase the scale and relevance of IG's U.S. business. IG said Tastytrade is a fast-growing, high-margin company that is well positioned to benefit from the structural growth in self-directed investing in the U.S.-listed options and futures market.
The acquisition is expected to be accretive to IG's adjusted earnings per share in the low single digits during the first full year after completion, the company said.
"The financial and strategic rationale underpinning this deal are compelling. I am confident that with our shared client-centric ethos, passion for innovation and growth, IG and Tastytrade will prove a winning combination," said Kristi Ross, co-founder and co-chief executive of Tastytrade.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix