Robinhood Markets will buy Canadian cryptocurrency firm WonderFi in an all-cash deal for C$250 million (US$179 million), the fintech announced Tuesday.
WonderFi operates two crypto platforms, Bitbuy and Coinsquare, which together have more than C$2.1 billion (US$1.5 billion) in assets under custody.
Robinhood will buy all of WonderFi’s issued and outstanding common shares for 36 Canadian cents-per-common-share, 41% above its Monday closing price.
The transaction is expected to close in the second half of the year.
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada,” said Johann Kerbrat, SVP and GM of Robinhood Crypto, in a prepared statement.
WonderFi is Robinhood’s third acquisition in the last 12 months, following its $200 million purchase of crypto firm Bitstamp last June and its $300 million purchase of portfolio manager TradePMR in November.
“Through a long and focused effort, WonderFi successfully built one of Canada’s largest registered Crypto-Trading platforms,” said WonderFi Executive Chairman Bobby Halpern in a prepared statement. “This transaction is the culmination of those efforts and the launchpad for Robinhood to democratize finance across Canada.”
“The arrangement provides WonderFi shareholders with all-cash consideration at an attractive premium to our recent trading levels,” Halpern added.
Further entrance into Canada is apt for Robinhood, which established its Canadian headquarters in Toronto last year. More than 140 employees are currently based in Canada.
Last year, WonderFi CEO Dean Skurka was kidnapped and held for $1 million ransom in Toronto, according to CBC. The saga ended up costing the company $3.6 billion, according to The Logic, including the ransom and upgrades to WonderFi’s security.
