Robinhood plans to acquire TradePMR for $300 million to drive wealth client growth

ChainCatcher news, according to Bloomberg, Robinhood Markets Inc. has agreed to acquire TradePMR, a custody and portfolio management platform for registered investment advisors, in a move aimed at attracting a broader base of affluent investors. Robinhood stated in a release that the deal—valued at approximately $300 million in cash and stock—is expected to close in the first half of next year. Through this acquisition, TradePMR's registered investment advisors will be able to access Robinhood's customers, who will also be able to easily connect with registered investment advisors (RIA). TradePMR is headquartered in Gainesville, Florida, and manages over $40 billion in assets. According to the statement, the TradePMR team will join Robinhood.

Robinhood has expanded its product offerings in the competitive retail investing space by increasing the available cryptocurrencies, launching credit cards, and even providing traders with the option to bet on election outcomes. It is also targeting clients with more stable levels of wealth, attempting to challenge traditional giants like Charles Schwab Corp. and Fidelity Investments in the rapidly growing wealth management sector.