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StoneX Group has announced plans to acquire R.J. O'Brien & Associates (RJO), the oldest futures brokerage and clearing firm in the United States, in a deal valued at approximately $900 million.
The transaction, expected to close in the third quarter of this year subject to regulatory approvals, will create one of the largest futures commission merchants (FCMs) in the US, significantly strengthening StoneX's position in global derivatives markets.
Under the agreement, StoneX will pay $625 million in cash and approximately 3.5 million shares of StoneX common stock. The company will also assume up to $143 million of RJO debt. StoneX has secured committed bridge financing for the cash portion and plans to issue approximately $625 million of long-term debt prior to closing.
Founded in 1914, RJO currently services more than 75,000 institutional, commercial and individual clients globally, alongside a network of approximately 300 introducing brokers. The firm reported revenue of $766 million and EBITDA of approximately $170 million for calendar year 2024.
Sean O'Connor, Executive Vice-Chairman of StoneX, described the acquisition as transformational: "This is a transformational transaction for StoneX, establishing us as a leading global derivatives clearing firm and reinforcing our position as an integral part of the global market structure across asset classes. Combining R.J. O'Brien's extensive client network and proven clearing capabilities with StoneX's deep liquidity, innovative OTC hedging solutions and leading risk management infrastructure, we are well-positioned to continue to deliver exceptional services, broader market access and industry-leading solutions to our combined client base. We are very pleased that Gerry Corcoran, who has been the CEO and driving force behind RJO, will continue on with StoneX in a senior leadership role."
The acquisition is expected to expand StoneX's client float by nearly $6 billion and increase cleared listed derivatives volume by approximately 190 million contracts annually. The company anticipates achieving more than $50 million in expense synergies and unlocking at least $50 million in capital synergies through consolidation of operations.
RJO Chairman and CEO Gerry Corcoran expressed enthusiasm for the merger: "We're extraordinarily excited about this partnership between two great companies that each bring over a century of history in the futures industry and complementary capabilities, products, services and cultures. We both prioritize a profound commitment to our clients and a focus on prudent risk management. 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. At the same time, our organization will benefit from new efficiencies, premier technologies and greater growth potential."
The O'Brien family, which holds majority ownership in RJO, has endorsed the transaction. Board member Bob O'Brien, Jr., speaking on behalf of the family, said: "This transaction is the right step to take for all of our stakeholders to ensure we carry on the values that have made the firm successful while putting us in the strongest position to compete and meet the challenges of the evolving financial landscape. StoneX was founded just 10 years after my grandfather, John V. McCarthy, started our firm in 1914. Like RJO, it was one of the earliest clearing members of the Chicago Mercantile Exchange. So many of our family members have been privileged to lead the company and provide guidance and counsel. We feel so close to our clients, brokers and employees; they're extended family to us. This merger is the natural next step in the history of the company, and the O'Brien family is enthusiastic about playing a new role as major shareholders in another great company that will build on that legacy."
Fellow board member John O'Brien, Jr. added: "My father, John O'Brien, Sr. – and his father before him, Robert J. O'Brien, Sr. – led the firm to new heights. My dad worked harder than anyone I have ever met, and his focus on integrity and profound impact on the business were matched only by how much he loved to talk about and spend time with RJO's clients, brokers and amazing employees. He would be the number one advocate for this transaction because it makes so much sense for all of our stakeholders – from employees and brokers to clients and shareholders. My father always said, 'If you're not growing, you're dying.' Gerry has done an incredible job leading the company and driving growth for over two decades while remaining true to our family's principles. He found just the right home for us with StoneX. Both RJO and StoneX have remained leaders in the industry, evolving with the times and expanding to ensure clients were best served. Moving forward together is the best way to stay a leader in this space and operate at an even higher level."
StoneX, a Fortune 100 company with operations across six continents and a market capitalisation exceeding $3.5 billion, serves more than 54,000 commercial and institutional clients, as well as over 400,000 retail accounts through more than 70 offices worldwide. The acquisition is expected to enhance margins, earnings per share, and return on equity for the company.
Bank of America is acting as exclusive financial advisor to StoneX, while Broadhaven Capital Partners is serving as exclusive financial advisor to RJO.
