(Alliance News) - Plus500 Ltd has completed its purchase of Cunningham Commodities LLC and Cunningham Trading Systems LLC as it looks to expand into the American futures market, it announced on Tuesday.
Based in Chicago, Cunningham Commodities is a futures commission merchant while its tech arm, Cunningham Trading Systems, is a futures and options trading platform provider. Plus500 has bought all of the membership interests of both Cunningham and its trading platform.
The Haifa, Israel-based online trading platform noted that the deal will open up opportunities for the firm as it looks to expand in the US market, specifically giving it "market access to the millions of US retail investors looking for new trading opportunities".
The total USD30 million acquisition cost will be funded from Plus500’s existing cash reserves.
"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," commented Chief Executive David Zruia.
"We are excited by the significant potential opportunity derived from this acquisition and the initial development of Plus500's footprint in the sizeable and growing US market."
Looking ahead, Plus500 said it would "continue to look for additional bolt-on acquisitions" in driving future growth.
Shares in Plus500 were trading marginally lower at 1,323.50 pence each in London on Tuesday morning.
By Will Paige; willpaige@alliancenews.com
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