US brokerage group Robinhood said on Tuesday that it will acquire Canadian company WonderFi. The terms of the deal value WonderFi at approximately $178m.
Based in Toronto, WonderFi operates several different crypto trading and payment companies that are focused on the Canadian market.
Coinsquare and Bitbuy are fairly similar products, with both offering platforms that let users trade, hold, or make payments in cryptocurrency.
SmartPay, as its name suggests, is more focused on the payments side of the crypto business. The other big brand that WonderFi operates is Bitcoin.ca, a news and education portal for cryptocurrencies.
WonderFi and Robinhood acquisition
Robinhood will pay CAD 0.36 per share for WonderFi, which is publicly traded and listed on the Toronto Stock Exchange.
That represents a sizeable 41% premium to the company’s latest close price.
Robinhood said in a statement that it expects the deal to be completed in the second half of this year, subject to regulatory approvals.
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada,” said Johann Kerbrat, SVP and GM of Robinhood Crypto. “We look forward to partnering with the WonderFi team to deliver innovative, user-centric crypto products to Canadian customers.”
The acquisition comes two months after WonderFi announced plans to add trading in CFDs via a partnership with Eightcap. That deal was supposed to see WonderFi adding CFDs on cryptocurrencies and other assets in partnership with the Aussie broker.
