Lightspeed Financial has agreed to buy fellow prime brokerage Terra Nova Financial Group, a move which would give the firm more than 5,500 clients and $1.25 billion in assets.
The New York-based firm will pay $27.6 million in cash for Terra Nova, with $22.6 million due up front. The deal must still win the approval of regulators and Terra Nova’s shareholders.
The acquisition of Terra Nova is the latest in a string of buys for Lightspeed, which has added NobleTrading, Schonfeld & Co. and Integrity Trading over the past few years.
“Industry consolidation under Lightspeed is both the clear path to profitably growing our business and providing individual traders an opportunity to benefit from proven, stable trading technology and support, and competitive pricing, within a firm with the wherewithal and desire to invest in the business,” Lightspeed CEO Stephen Ehrlich said.
“Terra Nova has a strong reputation for servicing retail traders and has an impressive roster of active trading clients,” he added. “Our shared focus on customer service makes us confident Terra Nova clients will see value in their Lightspeed experience.”
The deal expands Lightspeed’s footprint among derivatives-traders, which Terra Nova focused on. Terra Nova has about 3,000 direct-market access clients with $450 million in assets.
“Through this deal, our customers will continue to receive the excellent customer service they have grown to expect but complemented by Lightspeed's advanced trading suite of products that are industry leading,” Terra Nova chief Bernay Box said.