StoneX Group has agreed to acquire futures brokerage and clearing firm RJ O’Brien & Associates (RJO).
RJO generated approximately US$766 million in revenue in 2024, while StoneX Group reported US$1.7 billion in net operating revenue over the year. The group currently has a market cap above US$3.5 billion.
All RJO’s global businesses will be merged into StoneX. Gerry Corcoran, chairman and CEO of RJO, will take on a senior leadership role at StoneX following the acquisition.
Sean O’Connor, executive vice chairman of StoneX, commented: “[This establishes] us as a leading global derivatives clearing firm and reinforcing our position as an integral part of the global market structure across asset classes.”
By January 2025 results StoneX was the 16th largest futures commission merchant (FCM) in the US by total funds, according to CFTC data.
The approximately US$900 million deal is expected to close in H2 this year. The purchase will be made up of cash and shares of StoneX common stock. The company will use bridge financing for the cash portion, and plans to issue US$625 million in long-term debt before closure.
StoneX will also assume up to US$143 million in RJO’s debt through the transaction, with Bank of America providing debt financing.
Corcoran said: “RJO’s clients will continue to enjoy the same enduring relationships with the brokers they know so well and the high level of service they know they can expect from us. In addition to all the products we offer today, our clients and brokers will have a plethora of new products and services across asset classes available at their fingertips, bringing meaningful new trading and hedging opportunities.”
Broadhaven Capital Partners is RJO’s financial advisor, and Mayer Brown LLP its legal advisor. Bank of America is acting as financial advisor for StoneX, with Davis Polk & Wardwell as legal advisor.
