tastytrade, IG Group Close On $1B Partnership

IG Group Holdings Plc, a global online trading platform, formally announced the completed acquisition of tastytrade, Inc, for $1 billion.

The deal was first announced in January.

What Happened: Founded a decade ago by the veterans that developed and sold thinkorswim to TD Ameritrade, tastytrade is a holistic platform dedicated to changing the culture of investing.

The company’s core offer consists of education that challenges investors to think and trade strategically through the tastworks and Dough online brokerage platforms, as well as The Small Exchange, a futures exchange.

As part of a vision to engage over more investors with free, interactive content, tastytrade and IG Group will innovate and scale global access to their products, while further democratizing markets. The transaction is made up of $300 million in cash and the issuance of 61,000,000 ordinary shares in IG Group to tastytrade shareholders.

“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," June Felix, Chief Executive of IG, said. "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.”

Additionally, the management teams for IG and tastytrade will remain the same, and operations will continue seamlessly.

Why It Matters: The partnership comes alongside tremendous growth in financial markets participation; retail investors are taking advantage of lower fees and increased access to take control of their financial wellness.

Tom Sosnoff, Founder and co-CEO of tastytrade, said, “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.”