Financial trading platform Robinhood is reviving its plans on launching in the U.K. with a deal to buy crypto app Ziglu.
The company has agreed to buy Ziglu, a London-based fintech app that allows users to trade bitcoin and several other cryptocurrencies.
The move comes almost two years after Robinhood had stopped its plans to launch in the country.
Ziglu is one of the few crypto companies that has secured approval from the country’s Financial Conduct Authority.
Founded in 2018, Ziglu allows users to make payments, invest in a range of cryptocurrencies and earn interest on holdings of bitcoin and British pounds sterling.
The company has raised a total of £17.5 million ($22.8 million) to date, including £13.4 million from retail investors through the equity crowdfunding platform Seedrs. It was last valued at £85 million.
Robinhood announced on Tuesday that it had agreed to buy Ziglu, in an acquisition that will help in its expansion plans in the U.K. and Europe, the company said.
Shares of Robinhood climbed more than 5% Tuesday as Wall Street reacted to the news.
Robinhood reported a drop in monthly active users in the fourth quarter of 2021 — to 17.3 million from 18.9 million in the previous quarter. The company said it expects first-quarter 2022 revenue of less than $340 million, down 35% from the year-earlier period. The company has lost roughly two-thirds of its market value since debuting on the Nasdaq last summer.
Vlad Tenev, Robinhood’s CEO and co-founder, said the purchase of Ziglu “will help us accelerate our global expansion efforts.”
“Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe,” Tenev said in a blog post.
Terms of the acquisition were not disclosed and it is subject to regulatory approvals and other customary closing conditions, Robinhood said.
Mark Hipperson, Ziglu’s CEO, was previously a co-founder of British digital bank Starling. Ziglu and Robinhood “share a common set of goals,” he said.
“As part of Robinhood, we’ll supercharge Robinhood’s expansion across Europe and bring better access to crypto and its benefits to millions more customers,” Hipperson said.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.