Robinhood has made its first acquisition since its IPO. The trading platform announced that it is all set to acquire Say Technologies in a $140 million cash deal.
The deal was announced through a blog post published by Robinhood’s Chief Product Officer, Aparna Chennapragrada. However, the exact date of when the deal will be closed was not mentioned.
The news comes just under two weeks after the trading application went public on July 30.
Soon after the announcement, Robinhood’s stock plummeted by around 1% to 56.20.
More about the acquisition
Say Technologies offers an end-to-end communication solution that aims to allow shareholders to participate in proxy voting. Investors can scan through documents, vote, ask questions to the management, and also provide feedback on Say’s platform.
According to Chennapragrada, Say has reshaped investor communications and simplified how investors communicate with companies they invest in. She further said that just like Robinhood, Say was developed on the common belief that everyone should have the same level of access to the financial markets.
Both the companies shared a common goal of getting rid of hurdles that prevent people from getting involved with the financial system.
Alex Lebow, CEO, and co-founder, Say Technologies said that Say was primarily built to enable investors to engage with businesses they are investing in. Besides, it also helps companies understand their investors.
This acquisition will allow both companies to build an ecosystem of engagement and ownership to benefit companies and investors.
Why Robinhood and Say fit together?
Both the companies strongly believe that they are a perfect fit for each other. While Robinhood has a vast user pool of retail investors, Say brings in the technology that connects retail investors to the companies they partly own.
With the combination of Robinhood’s extensive database and Say’s expertise in communication, the move will allow the trading platform to provide an improved shareholder experience.
This move will also allow Robinhood to change the face of retail investing.
More about Say Technologies
Say Technologies provides tools that simplify investor communication. It closely works with broker-dealers to make public companies more accessible to shareholders.
Thus far, the New York-based company has raised $8 million in funding.
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