Publicly-listed
multi-asset fintech group Plus500 (LSE: PLUS) announced today (Monday) it has
conditionally agreed to acquire Indian financial services company Mehta
Equities Limited for approximately $20 million, marking its entry into one of
the world’s largest retail trading markets.
Plus500 to Acquire Indian
Broker Mehta Equities in $20M Deal
The
acquisition gives Plus500 immediate access to India’s futures market, where
over 150 billion contracts were traded in 2024, representing more than 75% of
global transaction volume.
“We
are thrilled to announce this acquisition in India, which marks a significant
milestone in our global expansion strategy,” said David Zruia, CEO of
Plus500. “By combining Plus500’s cutting-edge technology with Mehta’s
local presence and expertise, we aim to accelerate growth and unlock new
opportunities in this dynamic and fast-growing market.”
Founded in
1995, Mehta Equities provides brokerage services for futures, options, and cash
equities, portfolio management, investment banking, and custodian services. The
firm holds memberships with major Indian exchanges, including the National
Stock Exchange, Bombay Stock Exchange, and Multi Commodity Exchange .
The deal
will be funded from Plus500’s existing cash reserves of approximately $890
million as of December 31, 2024. Completion is subject to regulatory approvals
and other closing conditions.
Mehta’s
founder and chairman, Rakesh Mehta, will remain with the business following
completion. “We are proud and excited to be joining a well renowned and
established global fintech group such as Plus500,” Mehta said. “We
look forward to a successful future together as we work collectively to grow
the businesses and take them to the next level.”
Futures Move
The
acquisition is expected to boost Plus500’s presence in the global futures
market by offering execution and clearing services to both institutional and
retail customers. Additionally, it will expand the company’s product portfolio
to include various Indian financial products such as cash equities, options,
wealth management, and other local financial services.
For
Plus500, which already operates in the US futures market, the move into India
creates potential synergies between the two markets and furthers the company’s plan
of becoming a leading global multi-asset fintech group.
Plus500 made its US market entry through the acquisition of two related entities: Cunningham Commodities and Cunningham Trading Systems. The Israeli-founded fintech firm completed this transaction at a price tag of $30 million, funding the purchase from its substantial cash reserves.
The timing of Plus500’s American market expansion came after another significant industry move – IG Group’s purchase of tastytrade in a much larger deal valued at $1 billion. These strategic acquisitions enabled both London Stock Exchange-listed trading platforms to extend futures trading services to American clients, though tastytrade offers a considerably wider product range that encompasses stocks, options, and digital assets.
Plus500 Reports Solid 2024
Results
In the
meantime, the
company has released its financial results for 2024, showing continued
growth as the company pursues its international expansion strategy. The firm
reported revenue of $768.3 million, representing a 6% increase from the
previous year, while EBITDA reached $342.3 million with a 45% margin.
The
company’s customer base saw significant expansion, with new customer numbers
rising to 118,010, a 30% increase from 2023. Active customers totaled 254,138,
up 9% year-over-year. Customer deposits for the period amounted to $3.0
billion, with the average deposit per active customer at approximately $12,000.
Earnings
per share for 2024 stood at $3.57, a 13% increase from the previous year. The
company noted that its revenue and EBITDA had exceeded “market
expectations,” as previously indicated in its January trading update.
Publicly-listed
multi-asset fintech group Plus500 (LSE: PLUS) announced today (Monday) it has
conditionally agreed to acquire Indian financial services company Mehta
Equities Limited for approximately $20 million, marking its entry into one of
the world’s largest retail trading markets.
Plus500 to Acquire Indian
Broker Mehta Equities in $20M Deal
The
acquisition gives Plus500 immediate access to India’s futures market, where
over 150 billion contracts were traded in 2024, representing more than 75% of
global transaction volume.
“We
are thrilled to announce this acquisition in India, which marks a significant
milestone in our global expansion strategy,” said David Zruia, CEO of
Plus500. “By combining Plus500’s cutting-edge technology with Mehta’s
local presence and expertise, we aim to accelerate growth and unlock new
opportunities in this dynamic and fast-growing market.”
Founded in
1995, Mehta Equities provides brokerage services for futures, options, and cash
equities, portfolio management, investment banking, and custodian services. The
firm holds memberships with major Indian exchanges, including the National
Stock Exchange, Bombay Stock Exchange, and Multi Commodity Exchange .
The deal
will be funded from Plus500’s existing cash reserves of approximately $890
million as of December 31, 2024. Completion is subject to regulatory approvals
and other closing conditions.
Mehta’s
founder and chairman, Rakesh Mehta, will remain with the business following
completion. “We are proud and excited to be joining a well renowned and
established global fintech group such as Plus500,” Mehta said. “We
look forward to a successful future together as we work collectively to grow
the businesses and take them to the next level.”
Futures Move
The
acquisition is expected to boost Plus500’s presence in the global futures
market by offering execution and clearing services to both institutional and
retail customers. Additionally, it will expand the company’s product portfolio
to include various Indian financial products such as cash equities, options,
wealth management, and other local financial services.
For
Plus500, which already operates in the US futures market, the move into India
creates potential synergies between the two markets and furthers the company’s plan
of becoming a leading global multi-asset fintech group.
Plus500 made its US market entry through the acquisition of two related entities: Cunningham Commodities and Cunningham Trading Systems. The Israeli-founded fintech firm completed this transaction at a price tag of $30 million, funding the purchase from its substantial cash reserves.
The timing of Plus500’s American market expansion came after another significant industry move – IG Group’s purchase of tastytrade in a much larger deal valued at $1 billion. These strategic acquisitions enabled both London Stock Exchange-listed trading platforms to extend futures trading services to American clients, though tastytrade offers a considerably wider product range that encompasses stocks, options, and digital assets.
Plus500 Reports Solid 2024
Results
In the
meantime, the
company has released its financial results for 2024, showing continued
growth as the company pursues its international expansion strategy. The firm
reported revenue of $768.3 million, representing a 6% increase from the
previous year, while EBITDA reached $342.3 million with a 45% margin.
The
company’s customer base saw significant expansion, with new customer numbers
rising to 118,010, a 30% increase from 2023. Active customers totaled 254,138,
up 9% year-over-year. Customer deposits for the period amounted to $3.0
billion, with the average deposit per active customer at approximately $12,000.
Earnings
per share for 2024 stood at $3.57, a 13% increase from the previous year. The
company noted that its revenue and EBITDA had exceeded “market
expectations,” as previously indicated in its January trading update.
This post is originally published on FINANCEMAGNATES.
