StoneX to Acquire R.J. O'Brien for $900M

By Bobby Samwell • Monday, April 14 15:18 • Permanent Link

Stonex Group Inc. has announced its definitive agreement to acquire R.J. O'Brien, the oldest futures brokerage in the United States, for an equity value of approximately $900 million. The acquisition is expected to significantly strengthen Stonex's position as a leading futures commission merchant (FCM) and enhance its role as an essential part of the global financial market structure.

The transaction is anticipated to add over 75,000 clients to Stonex's portfolio, increasing its client float to over $13 billion. Furthermore, the acquisition is projected to drive more than $50 million in expense synergies and unlock at least $50 million in capital synergies.

R.J. O'Brien's attractive financial profile is evident from its 2024 performance, having generated $766 million in revenue and approximately $170 million in EBITDA. This acquisition is expected to enhance margins, EPS, and return on equity for Stonex.

Following the acquisition, R.J. O'Brien's clients will benefit from Stonex's extensive range of markets, products, and services, including an expansive over-the-counter (OTC) hedging platform, physical commodities hedging, financing, and logistic services, as well as access to deep liquidity across fixed income products.

The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions. Stonex has obtained fully committed bridge financing for the cash portion of the consideration and plans to issue approximately $625 million of long-term debt prior to the closing date.

In terms of advisory, Bank of America is acting as the exclusive financial advisor to Stonex and is providing committed debt financing for the acquisition. Davis Polk & Wardwell LLP is serving as Stonex’s legal counsel.

This acquisition marks a significant milestone for Stonex, establishing the company as a leading global derivatives clearing firm and reinforcing its position as an integral part of the global market structure across asset classes. Today the company's shares have moved 4.4% to a price of $78.9. Check out the company's full 8-K submission here.

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