Robinhood has announced a significant acquisition, agreeing to a cash and stock deal valued at $300 million to purchase TradePMR, a prominent custodial and portfolio management platform.
This transaction marks a strategic move for Robinhood, which aims to expand its offerings and compete with traditional brokerages such as Charles Schwab. With more than $40 billion in assets under administration, TradePMR is well-positioned to enhance Robinhood’s capabilities.
The acquisition comes in response to the evolving needs of Robinhood’s clientele, who are increasingly seeking guidance on managing and growing their investment portfolios. By integrating TradePMR’s services, Robinhood plans to facilitate connections between its users and Registered Investment Advisors (RIAs). This sector, valued at $7 trillion, is among the fastest-growing within wealth management, presenting a lucrative opportunity for both firms.
The partnership is expected to broaden TradePMR’s reach to a younger demographic while simultaneously advancing technology that streamlines access for RIAs to Robinhood’s customer base.
Vlad Tenev, CEO of Robinhood, expressed enthusiasm about the collaboration, stating, “We’re excited to join forces to build a category-defining advisory platform for the next generation.” Robb Baldwin, CEO of TradePMR, echoed this sentiment, highlighting the potential to create a multi-generational platform that bridges financial advisors with emerging investors.
The deal is anticipated to close in the first half of 2025, pending standard closing conditions, including regulatory approvals. This acquisition follows Robinhood’s recent $200 million purchase of the cryptocurrency exchange Bitstamp, as the company seeks to diversify its offerings beyond the U.S. market and enhance its digital asset presence. Additionally, Robinhood has introduced a new credit card and added futures and index options trading to its platform.