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Saturday, May 21, 2022
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Robinhood agrees to buy UK crypto firm Ziglu

Robinhood

The deal could provide a crucial boost to growth prospects for Robinhood, whose performance has weakened since the GameStop trading frenzy last year

Robinhood said Tuesday it has agreed to buy Ziglu, a London-based fintech app that allows users to trade bitcoin and several other cryptocurrencies. The acquisition will help in its expansion plans in the U.K. and Europe, the company said.

The announcement comes nearly two years after Robinhood halted plans to launch in the U.K. At the time, the company said it was prioritizing its business at home over international expansion.

Shares of Robinhood climbed more than 5% Tuesday.

The deal could provide a crucial boost to growth prospects for Robinhood, whose performance has weakened since the GameStop trading frenzy last year.

Robinhood reported a drop in monthly active users in the fourth quarter of 2021 — to 17.3 million from 18.9 million in the previous quarter — and said it expects first-quarter 2022 revenue of less than $340 million, down 35% from the year-earlier period. The company has lost roughly two-thirds of its market value since debuting on the Nasdaq last summer.

Vlad Tenev, Robinhood’s CEO and co-founder, said the purchase of Ziglu ‘will help us accelerate our global expansion efforts.’

Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe, Tenev said in a blog post.

Terms of the acquisition were not disclosed. The deal is subject to regulatory approvals and other customary closing conditions, Robinhood said.

Mark Hipperson, Ziglu’s CEO, was previously a co-founder of British digital bank Starling. Ziglu and Robinhood share a common set of goals, he said.

As part of Robinhood, we’ll supercharge Robinhood’s expansion across Europe and bring better access to crypto and its benefits to millions more customers, Hipperson said.

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