Crypto.com has inked a deal to purchase two exchanges from London-listed fintech IG Group.
Financial services platform Crypto.com has agreed to acquire the North American Derivatives Exchange and the Small Exchange for $216 million in cash, according to a statement by FTSE-250 company IG Group. Crypto.com, which caters to 10m customers worldwide, will purchase IG Group’s share holdings in both companies in a deal that is expected to close in the first half of 2022.
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, Co-founder and CEO of Crypto.com. “This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”
Crypto.com said that the proposed acquisition of Nadex and the Small Exchange will enable the company to provide its US-based customers with the opportunity to trade certain derivatives and futures products.
Nadex, which is regulated by the Commodity Futures Trading Commission, specialises in binary options, call spreads and Touch Bracket™ (“knock-out”) contracts. Small Exchange is a retail trader-centric futures exchange.
“We’re really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses,” said June Felix, the chief executive of IG Group.
“This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business,” Felix added.
IG Group said they are not expecting the transaction to materially impact full-year adjusted operating profit expectations nor the medium-term revenue growth guidance for High Potential Markets previously provided in July 2021. The company’s share price is up 0.78 per cent today.