Robinhood (NASDAQ: HOOD) has signed an agreement to acquire WonderFi (TSX: WNDR) (OTCQB: WONDF) in a move designed to boost its presence in Canada. WonderFi will become part of Robinhood Crypto, the company’s digital asset subsidiary.
In a blog post, Robinhood said that WonderFi operates two of Canada’s regulated crypto platforms, Bitbuy and Coinsquare, currently holding CDN 2 billion in assets under custody. Robinhood added that Canada is one of the fastest-growing crypto markets in the world.
Johann Kerbrat, SVP and GM of Robinhood Crypto, said WonderFi has built formidable brands that serve both advanced and novice crypto users.
WonderFi President and CEO Dean Skurka stated:
“WonderFi and Robinhood are united in our visions of making crypto accessible and bringing more people into the crypto space. We’re delighted to be joining the Robinhood team and to super-charge our product offerings for customers.”
WonderFi shareholders may expect to receive all-cash consideration of CDN $0.36 per share, representing a premium of 41% to its closing price and 71% to the 30-day VWAP, as of May 12. As of May 12th, WonderFi’s market cap in USD stood at $124 million at a per-share price of around $0.18.
Last month, WonderFi reported top-line revenue of CDN $57.7 million for 2024 and a net loss of CDN $1.24 million.
WonderFi will continue to operate its products after the acquisition closes, with its 140 Toronto-based employees becoming part of Robinhood.
The acquisition is expected to close in the second half of this year.