Plus500 to Acquire Cunningham Commodities

Plus500, an online CFDs broker, announced today that the company has conditionally agreed to acquire all of the membership interests of the US-based Cunningham Commodities, a regulated Futures Commission Merchant (FCM), along with the acquisition of the technology Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term provider, Cunningham Trading Systems.

According to an official announcement, the acquisition will be the first entry of Plus500 into the US futures & options on the futures market. Plus500 is planning to expand the company’s product offering in the US market.

The broker mentioned that the company is focused on its transition into a global Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term fintech group. The latest acquisition is expected to be completed during the third quarter of 2021, subject to conditions and regulatory approvals.

Commenting on the latest announcement, David Zruia, Chief Executive Officer of Plus500, said: “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.”

The total acquisition consideration of nearly $30 million will be funded from Plus500's existing cash balances and paid on completion. Plus500 reported strong financial results for the first three months of 2021. The broker saw $203.2 million in revenue during Q1 of 2021, which is a jump of 121% compared to Q4 of 2020.

Cunningham Commodities

Based in Illinois, Cunningham Commodities is a regulated Futures Commission Merchant. The company generated gross revenue of around $19 million in 2020 and reported profit before tax of approximately $0.6 million.

"We are very pleased to become part of Plus500, given its focus on technology and innovation and its strong track record of growth, as we look to grow and enhance Cunningham and CTS over time. We are looking forward to a successful future together as we take the businesses to the next level of their development," Bill Cunningham, Andrew Busby and Nate Ostrye, the Founders of Cunningham and CTS mentioned in a joint statement.

In March 2021, Plus500 proposed the appointment of Professor Jacob A. Frenkel, a well-known global economist, as Chairman of the company’s Board of Directors.