London-headquartered IG Group Holdings (LON: IGG) announced on Wednesday that it is selling its stakes in two subsidiary trading platforms: North American Derivatives Exchange (Nadex) and Small Exchange, to Foris DAX Markets, which operates as Crypto.com.
IG is the owner of Nadex but holds approximately 39 percent stakes in Small Exchange. The combined price of IG’s shareholdings in both companies is estimated to be $216 million, and the transaction will be all made in cash.
Though the deal has to satisfy customary conditions, including a regulatory review, the two companies are expecting to close the deal by the first half of 2022.
“We're really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses,” IG Group CEO, June Felix, said in a statement.
“This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business through our tastytrade and tastyworks franchises, both in the US and internationally where we see significant room for growth.”
Regulated US Platforms
Nadex is one of the very few regulated US platforms that offer binary options, while Small Exchange is a relatively new US futures exchange operating since June 2020.
Additionally, the announcement details that the expected transaction will neither materially impact the full-year of adjusted operating profit expectations nor the medium-term revenue growth guidance.
Meanwhile, Crypto.com is expecting to expand its offering to its US customers with the acquisition of the two exchanges.
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, Co-Founder and CEO of Crypto.com. “This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”
