StoneX to acquire R.J. O’Brien for $900 million

NEW YORK - StoneX Group Inc. (NASDAQ: SNEX), a prominent financial services firm, has announced a definitive agreement to acquire R.J. O’Brien & Associates, the United States’ oldest futures brokerage, for an equity value of approximately $900 million. The transaction, which includes a combination of cash and StoneX common stock, as well as the assumption of RJO’s debt, is poised to cement StoneX’s status as a leading Futures Commission Merchant (FCM) with an expansive global derivatives platform.

The acquisition, expected to close in the second half of 2025, subject to regulatory approvals, will see StoneX assuming up to $143 million of RJO’s debt. StoneX will pay $625 million in cash and issue approximately 3.5 million shares of its common stock. The deal is supported by fully committed bridge financing and the intention to issue long-term debt prior to closing.

R.J. O’Brien, with over a century of futures and clearing expertise, supports over 75,000 client accounts and has a network of nearly 300 introducing brokers. The acquisition is set to expand StoneX’s client float by nearly $6 billion and is projected to increase its cleared listed derivatives volume by approximately 190 million contracts annually.

StoneX Executive Vice-Chairman Sean O’Connor highlighted the transformative nature of the deal, emphasizing the combined capabilities and the reinforcement of StoneX’s global market structure role across asset classes. Gerry Corcoran, Chairman and CEO of RJO, echoed the sentiment, stressing the benefits for clients and brokers, as well as the growth potential and new efficiencies for the organization.

Financially, RJO brings a robust profile to StoneX, having generated $766 million in revenue and approximately $170 million in EBITDA during the calendar year 2024. The consolidation of operations is expected to drive more than $50 million in expense synergies and unlock at least $50 million in capital synergies. StoneX’s financial health score on InvestingPro is rated as GOOD, with particularly strong price momentum metrics, suggesting solid execution capability for this strategic acquisition.

Bank of America serves as the exclusive financial advisor to StoneX, with Davis Polk & Wardwell LLP as legal counsel. Broadhaven Capital Partners and Mayer Brown LLP are advising RJO.

This strategic move is based on a press release statement and aims to offer clients a broader range of markets, products, and services, including over-the-counter (OTC) hedging platforms, physical commodities hedging, and fixed income products, while driving revenue and capital synergies for the combined entity. With StoneX’s impressive last-twelve-month revenue of $107 billion and strong market position, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which provide exclusive financial metrics and expert analysis for over 1,400 US stocks.

In other recent news, StoneX Group Inc. has reported several significant developments. The company announced the introduction of a new shell egg futures contract aimed at providing stakeholders in the egg market with a tool to manage price risk. This contract is part of StoneX’s strategy to enhance pricing transparency and supply chain stability. In addition, StoneX has entered into an agreement to acquire The Benchmark Company, LLC, which is expected to bolster its equity and debt capital markets services upon regulatory approval.

William Blair initiated coverage of StoneX with an Outperform rating, citing the company’s diversified services and strong position in niche markets as factors for potential consistent growth. StoneX also formed a strategic partnership with Bamboo Payment Systems to enhance cross-border payment solutions in Latin America, a move that includes an undisclosed investment by StoneX. Furthermore, StoneX shareholders have approved several key proposals, including the election of directors, executive compensation, and an amendment to the incentive plan.

These developments reflect StoneX’s ongoing efforts to expand its service offerings and strengthen its market position. The company’s recent activities demonstrate its commitment to innovation and strategic growth in the financial services sector.

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