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Highlights
- TradeStation Group Inc said it is looking to get listed via a merger with a special purpose acquisition company (SPAC).
- Its merger with Quantum FinTech Acquisition Corporation (NYSE: QFTA, QFTA:US) is expected to bring the combined entity’s valuation to about US$ 1.43 billion.
- TradeStation Group is a parent enterprise with a number of digital securities and futures brokerage platforms and trading tech firms under it.
TradeStation Group Inc announced on Thursday, November 4, that it is going public via a merger with blank check company Quantum FinTech Acquisition Corporation (NYSE: QFTA, QFTA:US).
Founded in 1982, TradeStation Group is a parent enterprise with a number of digital securities and futures brokerage platforms and trading tech firms under it. It is said to offer self-clearing digital brokerage services and other solutions for stocks, exchange traded funds (ETFs), cryptocurrencies, etc.
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Let us take a look at TradeStation’s listing details.
TradeStation Group SPAC merger details
The financial technology (fintech) company’s deal with the special purpose acquisition company (SPAC) is set to see a transaction of about US$ 316 million in cash ahead of the payment of expenses.
TradeStation SPAC: When & where to buy the fintech player's TRDE stock?
This funding, the company said, will consist of up to US$ 201 million of the cash in the SPAC’s trust account and about US$ 115 million from the SPAC’s private investment in public equity (PIPE).
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The PIPE is said to have seen financing from institutional investors headed by Tokyo, Japan-based financial services company Monex Group Inc and investment management firm Galaxy Digital LP.
The merger deal, TradeStation said in its latest official statement, is expected to close in the first half of 2022. Once that happens, the online brokerage firm’s stocks are set to go up on the New York Stock Exchange (NYSE) for trading under the ticker of 'TRDE'.
The merger transaction, TradeStation Group said, is expected to bring the combined entity’s valuation to about US$ 1.43 billion.
The company’s management team, including its president and CEO and the members of board of directors, will continue to head the company after the merger, TradeStation said.
Bottom line
TradeStation noted in its statement that it plans to use the net proceeds from the merger deal in strategies intended to boost its account and revenue growth, as well as to fund its expanded product development and IT headcount.
With the listing practice of SPAC mergers gaining momentum, TradeStation’s plans to move into the stock trading world could be one to keep an eye on for interested investors.
