StoneX completes acquisition of R.J. O’Brien to become largest non-bank FCM

NEW YORK - StoneX Group Inc. (NASDAQ:SNEX), whose stock has surged 76% over the past year and currently trades near its 52-week high of $99.08, announced Thursday it has completed its previously announced acquisition of R.J. O’Brien (RJO), the oldest independent futures brokerage in the United States. According to InvestingPro analysis, the company appears slightly overvalued at current levels.

The transaction positions StoneX as the largest non-bank Futures Commission Merchant in the U.S. and strengthens its presence in global derivatives markets. Founded in 1914, RJO supports over 75,000 client accounts and serves approximately 300 introducing brokers, along with commercial, institutional, and individual investors.

According to the company’s press release, RJO generated $766 million in revenue and approximately $170 million in EBITDA during calendar 2024. The acquisition expands StoneX’s client float by nearly $6 billion.

"This is a proud moment for both companies. With more than 200 years of combined futures and commodities expertise, we are strengthening StoneX’s role as an integral part of the global financial infrastructure," said Sean O’Connor, Executive Vice-Chairman of StoneX.

The combined entity now provides clients with access to nearly every major global derivatives exchange. StoneX has targeted $50 million in expense savings and aims to unlock at least $50 million in capital synergies through operational consolidation.

Philip Smith, Chief Executive Officer of StoneX, stated the transaction "significantly expands our scale and increases our capabilities in several critical areas, including through a materially expanded client network and the addition of the leading introducing broker business."

Gerry Corcoran, Chairman and CEO of RJO, noted that RJO will continue to deliver "the same level of outstanding and personalized service" while now operating on a larger scale with more extensive resources.

The acquisition is expected to enhance StoneX’s margins and return on equity, and be accretive to earnings, according to the company’s statement.

In other recent news, StoneX Group Inc. reported fiscal second quarter 2025 earnings per share of $1.41, surpassing Jefferies’ estimate of $1.26. The company’s net operating revenues exceeded projections by $31 million, although expenses increased by $17 million due to variable compensation. Despite the higher costs, operating income was $13 million above expectations, with the Commercial and Institutional segments outperforming estimates by $38 million and $43 million, respectively. In terms of strategic moves, StoneX has entered a letter of intent to acquire Intercam Advisors, Inc. and Intercam Securities, Inc., pending regulatory approvals and other conditions. Additionally, StoneX Financial Europe GmbH, a subsidiary of StoneX, plans to acquire French brokerage Plantureux et Associés to strengthen its presence in the European grain market. StoneX also announced the pricing of $625 million in 6.875% Senior Secured Notes due 2032, intended to support its acquisition strategy, including the purchase of R.J. O’Brien. Jefferies analysts raised StoneX’s price target to $102 from $83, maintaining a Buy rating on the stock. These developments reflect StoneX’s ongoing efforts to expand its market reach and enhance its financial performance.

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