Tastytrade Sells For $1B; 2nd Big Exit For Founder
Tastytrade is a popular platform that provides financial media and content for investors and traders as well as provides a…
Tastytrade is a popular platform that provides financial media and content for investors and traders as well as provides a platform for its users to trade options and derivatives. Now, it’s the latest fintech startup to head for a big exit with a $1 billion sale to the British electronic trading company IGN Group.
Tastytrade will be joining IGN in a deal valued at $1 billion net of cash held by Tastytrade. The price is split into $300 million in cash and the remainder with IGN stock. It represents a lucrative exit for Tastytrade which is backed by some $47 million in venture funding.
Apparently, IGN, a British company that provides options and derivatives trading and brokerage services for professional investors, is betting that the appeal of retail investors that Tastytrade targets will boost its business. It’s agreed to pay a big $1 billion for a company with more than 105,000 active trading accounts that’ll then fall under its control.
Tastytrade’s $1 billion sale represents the second big exit for its 63-year-old founder Tom Sosnoff, who also founded a previous trading platform, Thinkorswim, that sold for over $600 million to TD Ameritrade, a major American brokerage. Now, Sosnoff has a second big exit to his name and strengthened his prowess in the electronic trading industry.
Upon the completion of the acquisition, Tastytrade will continue to be led by its current management team led by Sosnoff. The acquisition is expected to be completed in the first quarter of IG’s financial year ending May 31, 2022.