(Reuters) – Retail trading platform Robinhood Markets (NASDAQ:HOOD) will acquire portfolio management platform TradePMR in a cash-and-stock deal for about $300 million, the companies said on Tuesday.
Robinhood has been pushing to grab market share from traditional brokerages such as Charles Schwab (NYSE:SCHW) and Fidelity Investments in its effort to become to a full-fledged financial services provider.
Over the past few months, Robinhood has unveiled a credit card, launched a desktop trading platform, added futures and index options trading and rolled out contracts for betting on the U.S. presidential election.
Robinhood’s shares, which were up 1.2% in trading before the bell, have gained nearly 175% in 2024.
The TradePMR acquisition, expected to close in the first half of 2025, will help Robinhood’s customers find and connect to registered investment advisers (RIAs).
“Robinhood’s client base is the next generation of investors. We believe this acquisition allows us to build a multi-generational platform that will help introduce financial advisers to this next generation,” said Robb Baldwin, founder and CEO of TradePMR.
RIAs advise clients and may manage their assets in a fiduciary capacity, that is, they act in the best interest of their clients. The RIA market is a $7 trillion industry, the companies said.
TradePMR has more than $40 billion in assets under management, it said on Tuesday.
Citi was Robinhood’s financial adviser, while TradePMR was advised by Lazard (NYSE:LAZ).