Financial services conglomerate StoneX announced on Monday that it will acquire futures broker RJ O’Brien for $900m.
The deal, which is expected to close in the third quarter of this year, is still subject to regulatory approvals.
“This is a transformational transaction for StoneX, establishing us as a leading global derivatives clearing firm and reinforcing our position as an integral part of the global market structure across asset classes,” said Sean O’Connor, Executive Vice-Chairman of StoneX.
“Combining RJ O’Brien’s extensive client network and proven clearing capabilities with StoneX’s deep liquidity, innovative OTC hedging solutions and leading risk management infrastructure, we are well-positioned to continue to deliver exceptional services, broader market access and industry-leading solutions to our combined client base. We are very pleased that Gerry Corcoran, who has been the CEO and driving force behind RJO, will continue on with StoneX in a senior leadership role.”
StoneX’s decision to acquire RJ O’Brien was primarily aimed at acquiring the latter company’s client book, with ~75,000 customers currently trading with the firm.
StoneX also said that it believes it can realise cut costs of $50m as a result of the merger.
RJ O’Brien CEO Gerry Corcoran will remain at the firm post merger.
“We’re extraordinarily excited about this partnership between two great companies that each bring over a century of history in the futures industry and complementary capabilities, products, services and cultures,” said Corcoran.
“We both prioritize a profound commitment to our clients and a focus on prudent risk management. RJO’s clients will continue to enjoy the same enduring relationships with the brokers they know so well and the high level of service they know they can expect from us. In addition to all the products we offer today, our clients and brokers will have a plethora of new products and services across asset classes available at their fingertips, bringing meaningful new trading and hedging opportunities.”
