IG Announces Proposed Acquisition of tastytrade

​The Board of IG Group Holdings plc (IG) announced today its proposed acquisition of tastytrade, Inc. (tastytrade), an online brokerage and trading education platform with a leading position in US listed derivatives, primarily options and futures, and over 105,000 active accounts.

 tastytrade is highly complementary to IG's existing client offering, adding a leading provider of exchange traded derivatives and increasing the contribution from agency-only activities. The Landmark transaction will expand and diversify IG's growth drivers through entry into the world's largest listed derivatives market.

IG plans to pay a total consideration of $1.0 billion to tastytrade's shareholders, comprising $300 million in cash and the issuance of 61.0 million IG shares, valued at $700 million.

Following completion of the Acquisition, key tastytrade management shareholders, comprising Co-CEO Tom Sosnoff, Co-CEO and President Kristi Ross, CEO Scott Sheridan and CTO Linwood Ma, will join the IG senior leadership team. They will also continue in their current roles to help drive further growth in the business and will collectively own approximately 5.7% of the enlarged share capital of IG.

Completion of the Acquisition remains subject to the satisfaction of customary conditions, including regulatory and anti-trust consents in the US.

June Felix, Chief Executive of IG, commented: "I am thrilled to welcome tastytrade to the IG Group family. This acquisition will materially expand and scale our business in the US and see us further diversify into the exciting high growth market of US retail options and futures, a market which is adjacent to IG's core retail trading skill set. The US market has more than 1.5 million retail traders and is the largest derivatives market in the world. tastytrade has grown impressively and proven itself to be an innovative market disrupter passionately committed to delivering for their clients. 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." 

Tom Sosnoff, Co-Founder and Co-CEO of tastytrade, said: "Early on we knew tastytrade was a very special company. While our long-term goal has always been to go global, we waited almost 10 years until we found the right partner and perfect match. Together we will focus on empowering the self-directed investor and change the way people perceive and engage with financial markets."