Robinhood to Acquire WonderFi for Approximately $179 Million Dollars
In a strategic move to expand its presence in the cryptocurrency market, Robinhood Markets has announced its acquisition of Canadian firm WonderFi for C$250 million (US$179 million). The deal, valued at around 36 Canadian cents-per-common-share, is set to close in the second half of the year.
WonderFi, which operates two crypto platforms, Bitbuy and Coinsquare, has a combined C$2.1 billion (US$1.5 billion) in assets under custody. The company, under the leadership of Executive Chairman Bobby Halpern, has built one of Canada's largest registered Crypto-Trading platforms.
The acquisition is seen as a launchpad for Robinhood to democratize finance across Canada. Robinhood's SVP and GM of Robinhood Crypto, Johann Kerbrat, stated that WonderFi is an ideal partner to accelerate Robinhood's mission in Canada.
For WonderFi shareholders, the arrangement provides all-cash consideration at an attractive premium to recent trading levels. The purchase price is 41% above WonderFi's Monday closing price.
It's worth noting that there have been no reported significant negative incidents associated with WonderFi either before or during this acquisition phase. There is no publicly available information or reports indicating that WonderFi has faced any significant incidents or controversies in the past.
This is Robinhood's third acquisition in the last 12 months, following its purchase of crypto firm Bitstamp last June and portfolio manager TradePMR in November. With more than 140 employees currently based in Canada, Robinhood established its Canadian headquarters in Toronto last year.
The Logic reported that an incident involving the kidnapping of WonderFi CEO Dean Skurka last year and the subsequent $3.6 billion cost to the company, including the ransom and upgrades to WonderFi's security, has not been a factor in the acquisition decision.
The acquisition is expected to bolster Robinhood's position in the Canadian cryptocurrency market, furthering its mission to make finance more accessible to all.
Robinhood aims to utilize WonderFi's assets and platform to strengthen its foothold in the Canadian cryptocurrency market, aligning with its mission to democratize finance. The acquisition also presents an opportunity for Robinhood to accelerate its investing activities in Canada, leveraging WonderFi's technology and business strategy.
