April 21, 2021 | AtoZ Markets – Plus500 Limited, a leading online CFD provider is expanding into the US futures and options market with the acquisition of Cunningham Commodities for $30 million.
The deal involves Cunningham Commodities, a regulated Futures Commission Merchant, and its tech arm CTS, a futures and options trading platform provider.
Plus500 said the acquisition will give it access to millions of US retail investors and provide the requisite licenses to operate in the US market, where it does not have a presence currently.
Established in 1982, Cunningham is based in Illinois, and registered as an FCM with the Commodity Futures Trading Commission (CFTC). It is a member of National Futures Association (NFA) and is a clearing member of the Chicago Board of Trade, Division of CME Group, Inc. (CBOT).
In 2020, Cunningham generated gross revenue of approximately US$19mln and profit before tax of approximately $0.6 million.
The acquisition is expected to be earnings accretive in its first full year.
Founders, Bill Cunningham, Andrew Busby, and Nate Ostryeare are staying with the business following the completion of the acquisition said Plus500.
David Zruia, Plus500’s chief executive added: "We are delighted to announce Plus500's first acquisition and first entry into the US market.
“With a combination of Plus500's best-in-class technology and Cunningham's and CTS's existing infrastructure, we expect to develop and scale the business in the growing US market and deliver long-term shareholder value."
"The acquisition represents an important strategic step for Plus500 as we continue to transition into a global, multi-asset fintech group.”
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