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Interactive Brokers Acquiring Retail Brokerage From Goldman Sachs

By Eric Volkman - Dec 4, 2020 at 8:34PM

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The seller will keep two strategic components of Folio Investments in the deal, however.

Interactive Brokers Group ( IBKR 1.68% ) is acquiring a big piece of a peer brokerage from Goldman Sachs ( GS 2.78% ). In the deal, Interactive will purchase the self-directed retail segment of Folio Investments, a subsidiary of Folio Financial. Goldman bought the latter business in mid-September. The sprawling investment bank will retain Folio's clearing and custody services.

Interactive did not specify the acquisition price, and Goldman has not publicly commented on it at all. 

Interactive did provide several details about Folio Investments' business. It said that there are roughly 70,000 self-directed investors on its client list, and that owning much of the company will add roughly $3 billion in client equity.

A person looking at a set of digital indexes and graphs.

Image source: Getty Images.

Addressing its clients, the acquirer touted the benefits of merging Folio's operations with its own. "With the transition to our firm, Folio Investments' former clients now will be able to invest in stocks, options, futures, currencies, bonds, and funds worldwide from a single, integrated account."

Interactive pointed out that previously, Folio's retail customers could only buy U.S.-listed stocks commission-free at certain times. They will have much more freedom to purchase a range of securities when they become Interactive clients, the company said.

According to its figures, Interactive had nearly 1.04 million customer accounts as of the end of November. That figure was 52% higher than at the same point in 2019. During that time, client equity rose by 61% to hit almost $269 billion.

On Friday, Interactive Brokers' stock rose by 0.6%, while Goldman's increased by a more robust 1.8%.

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Stocks Mentioned

Interactive Brokers Group, Inc. Stock Quote
Interactive Brokers Group, Inc.
$76.77 (1.68%) $1.27
The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
$400.11 (2.78%) $10.81

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