Interactive Brokers to Acquire the Retail Brokerage Segment of Folio Investments

Interactive Brokers Group (Nasdaq: IBKR), a global brokerage firm, has announced that it has entered into an agreement with Folio Investments Inc., a subsidiary of The Goldman Sachs Group, Inc., to acquire its self-directed retail brokerage segment. Terms of the Interactive Brokers' account purchase, which is expected to close in January 2021, were not disclosed.

The deal follows Goldman Sachs' purchase of Folio Financial on September 18, 2020. Goldman will retain the clearing and custody services Folio Investments created for investment advisors. 

As a result of the acquisition, Interactive Brokers will welcome approximately 70,000 Folio Investments' self-directed customers to the company. As of November 30, 2020, Interactive Brokers had 1.037 million client accounts, 52% higher than the prior year. Client equity climbed to $268.7 billion, a 61% increase from the prior year. The acquisition is expected to add approximately $3 billion in client equity. It will also provide Folio Investments' clients with many new benefits.

"Interactive Brokers has long been recognized for its advanced technology, superior pricing, and breadth of product," said Interactive Brokers CEO Milan Galik. "With the transition to our firm, Folio Investments' former clients now will be able to invest in stocks, options, futures, currencies, bonds and funds worldwide from a single, integrated account."