IG Group Agrees to Sell Nadex and Small Exchange to Crypto.com

London-headquartered IG Group Holdings (LON: IGG) announced on Wednesday that it is selling its stakes in two subsidiary trading platforms: North American Derivatives Exchange (Nadex) and Small Exchange, to Foris DAX Markets, which operates as Crypto.com.

IG is the owner of Nadex but holds approximately 39 percent stakes in Small Exchange. The combined price of IG’s shareholdings in both companies is estimated to be $216 million, and the transaction will be all made in cash.

Though the deal has to satisfy customary conditions, including a regulatory review, the two companies are expecting to close the deal by the first half of 2022.

“We're really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses,” IG Group CEO, June Felix, said in a statement.

“This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business through our tastytrade and tastyworks franchises, both in the US and internationally where we see significant room for growth.”

Regulated US Platforms

Nadex is one of the very few regulated US platforms that offer binary options, while Small Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term is a relatively new US futures exchange operating since June 2020.

Additionally, the announcement details that the expected transaction will neither materially impact the full-year of adjusted operating profit expectations nor the medium-term revenue growth guidance.

Meanwhile, Crypto.com is expecting to expand its offering to its US customers with the acquisition of the two exchanges.

“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, Co-Founder and CEO of Crypto.com. “This proposed acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”