IG Group and tastytrade, Inc. unite in historic $ 1 billion deal

LONDON AND CHICAGO – (BUSINESS WIRE) –IG Group Holdings Plc (“IG”), the global online trading platform and tastytrade, Inc. (“tastytrade”), the fast-growing online financial network that defends and empowers individual investors, today announced their intention to join forces in a historic business. IG is offering tastytrade a total purchase price of $ 1 billion, which excludes tastytrade money. The management teams of IG and tastytrade will remain the same.

Both IG and tastytrade share a passion for market disruption, innovation and growth. They are committed to empowering self-directed traders to unlock opportunities in the financial markets and engage their customers with innovative educational content – a real differentiator in the market. In addition, in four years, tastytrade has built one of the best rated brokerage firms¹ for online trading by options and futures active traders. This deal significantly increases IG’s presence in the US derivatives market and further diversifies its product offering, while providing a global platform for tastytrade’s international ambitions.

“I am very happy to welcome the tasty group to the IG Group family. This acquisition will materially expand and scale our business in the United States and provide us with even greater diversification in the high-growth market for retail and futures options in the United States, a market adjacent to IG’s core retail trade skill set. The US market has more than 1.5 million retailers^two and it is the largest derivatives market in the world, ”said June Felix, CEO of IG Group.

“Tastytrade has grown impressively and proved to be an innovative market disruptor and passionate about serving its customers. The financial and strategic foundations that underpin this business are compelling. I am confident that, with our shared customer-centric ethos, passion for innovation and growth – IG and tastytrade will prove a winning combination. ”

“From the beginning, we knew that tastytrade was a very special company. Although our long-term goal has always been to go global, we wait almost 10 years before we find the right partner and the perfect match. Together, we will focus on empowering the self-directed investor and changing the way people perceive and engage with financial markets. Get ready, world! ”Said Tom Sosnoff, founder and co-CEO of tastytrade.

“We create tastytrade with a vision to challenge self-directed investors to think and trade strategically. We build an ecosystem to empower them. No other company has built a retail trader ecosystem in exactly the same way: delivering authentic, fun and practical research-based content through our uniquely developed financial media network; our two revolutionary brokers with intuitive front-end technology and based on high frequency middleware; for a futures exchange focused on retail, ”said Kristi Ross, cofounder and co-CEO of tastytrade. “IG shares our mission and, likewise, has a deep history of innovation, leadership in the financial markets and a robust and scalable infrastructure. Most importantly, we share a customer-centric philosophy. We are excited to work with IG to make derivatives trading more accessible to retail investors around the world. ”

The tastytrade platform is expected to remain the same with operations continuing smoothly. The completion of the acquisition is expected to occur in the first quarter of the financial year of IG ended on May 31, 2022, subject to the satisfaction of the usual conditions and regulatory approvals.

The transaction will position IG to drive further growth in long-term earnings through the acquisition of a fast-growing business, operating with attractive profit margins and delivering strong cash conversion. The transaction is expected to be a low single digit addition to IG adjusted earnings per share³ in the first full year after completion.

Jefferies International Ltd. and Fenchurch Capital Partners LLP are serving as Leading Financial Advisers for IG.

For more information, visit IG’s Regulatory News Service announcement at https://www.londonstockexchange.com/news-article/IGG/proposed-acquisition-of-tastytrade-inc/14834889.

About IG

IG empowers informed, determined and adventurous people to access opportunities in more than 17,000 financial markets. With a strong focus on innovation and technology, the Company puts customer needs at the center of everything it does.

IG’s vision is to provide the best commercial experience in the world. Established in 1974 as one of the world’s leading suppliers of financial derivatives to retail traders, it continued to lead the way by launching the world’s first online and iPhone trading services.

IG is an award winning multi-product trading company that allows retail, professional and institutional customers to trade 24 hours a day, 7 days a week⁴. IG is the world’s No. 1 supplier of CFDs⁵ and a global leader in foreign exchange derivatives. It provides leveraged services with the option of limited risk guarantees and offers a stock trading service only for execution in the UK and Australia. IG has a range of affordable and fully managed investment portfolios that offer a comprehensive offering for active investors and traders.

IG is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and North America. IG Group Holdings plc has an investment grade long-term credit rating of BBB- with a stable outlook from Fitch Ratings.

About tastytrade, Inc.

Based in Chicago, IL and founded in 2011, tastytrade is a unique and fast-growing platform that defends and empowers individual investors. A disruptive force in the US derivatives market, tastytrade provides differentiated financial content, retail trader education and brokerage services. The company was founded and is led by the entrepreneurial management team that previously created the highly successful options trading platform, thinkorswim, acquired by TD Ameritrade in 2009.

tastytrade is one of the most watched online financial networks, involving investors and traders in 190 countries with 8 hours of daily, live, free and commercial programming with over 100 million hours viewed and programming 7 days a week. tastytrade offers more than 100 unique segments for new and experienced traders. Tastytrade’s data-driven research-based content teaches a logical and mechanical approach to investing and identifying opportunities based on probability and volatility. Investors are continually challenged with financial mathematics, humor and new market prospects.

tastytrade is the parent company of tastyworks, a broker that creates and leads a financial revolution for the do-it-yourself and mass investor, a mobile broker that radically challenges the status quo and changes wealth creation and the Quiet Foundation, a science-driven investment advisory service launched in 2018. tastytrade is also an ‘incubator’ for other fintech companies, including The Small Exchange, a futures exchange platform focused on retail traders launched in 2020, and an investor in Zero Hash, a cryptocurrency provider of currency infrastructure.

^{______________________________}

¹ Source: tastyworks was ranked the second best online broker for active traders by Barron’s in its report “Best Online Brokers for 2020”.

^two Market reports of latest investment trends and internal estimates.

³ EPS is adjusted to add amortization of acquired intangibles (non-cash), use of transaction-related DTA (non-cash), compensation expenses related to the acquisition of the tastytrade employee retention package and one-time transaction costs.

⁴ Excluding 10pm Friday (GMT) to 8am Saturday (GMT)

⁵ Based on revenue, excluding FX (from published financial statements, June 2020