Robinhood Markets, Inc. (NASDAQ:HOOD) shares are trading lower Thursday. The company signed an agreement to acquire X1.
What To Know: The acquisition represents a major move for Robinhood in broadening its product offerings as well as strengthening its relationship with existing customers.
X1 Inc., a platform that offers a no-fee credit card with rewards on each purchase, meets Robinhood’s goal of democratizing finance for all through this type of card.
The X1 stainless steel credit card boasts such features as no annual fees, late fees, or foreign transaction fees.
“This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit,” said Vlad Tenev, CEO and co-founder of Robinhood.
The final merger consideration is expected to be approximately $95 million in cash and the acquisition is expected to close in the first-quarter 2023.
Related Link: No Cash? No Problem: Robinhood Prepares To Offer Credit To Its Users
HOOD Price Action: Shares of HOOD were down 4.20% at $9.35 at the time of publication, according to Benzinga Pro.
Image by Firmbee from Pixabay
