TradeStation Group to become public company through SPAC Merger
TradeStation, one of the largest multi-asset investment and trading platforms based out of Florida, has announced that it would be going public and becoming an NYSE-listed company through a deal with SPAC Quantum Fintech.
The SPAC route seems to be the preferred option for fintech and crypto companies nowadays as it gives them a shortcut to get listed on the NYSE without the need to go through the long process of getting themselves approved for listing. It removes the hassle and also helps to hasten the process of listing and raising funds as well. TradeStation is used by many businesses that deal with trading and the company expects to use the funds to accelerate its account and revenue growth as well as improve its brand awareness and marketing as well. The deal is expected to close in the first half of 2022 with an implied pro format value at closing expected to be at $1.43 billion.
“This transaction is an exciting new chapter in the ongoing story of TradeStation as an innovator that supports traders and investors seeking to claim their financial edge,” John Bartleman, CEO of TradeStation, said. “In recent years our appeal has grown from seasoned active traders to include a new generation of traders and investors who are drawn to TradeStation’s powerful analytics and order-entry tools to help them identify opportunities, plot and test trading strategies, and execute those strategies on a trusted, reliable and versatile platform. Throughout TradeStation’s history, we have grown by providing our clients with a multi-asset trading platform, innovative new products, and rich educational content that builds confidence among seasoned and first-time investors alike.”
The Monex Group Inc, the parent company of TradeStation would continue to retain the equity that it has now and it is expected that it would hold 80% of TradeStation when the deal closes. A total investment of $115 million with $50 million each coming from the Monex Group and Galaxy Digital LP would be made. Galaxy is a leader in the crypto space and it is expected that their investment into TradeStation would increase the role of crypto instruments in the trading platform and it would be able to offer a lot more crypto products in the future.
The current management team at TradeStation would continue to remain in place post the transaction and would lead the company going forward.