Robinhood to Acquire TradePMR for $300 Million

(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 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, acting 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).