Robinhood plans to acquire TradePMR for $300 million to drive wealth customer development

According to Bloomberg, Robinhood Markets Inc. has agreed to acquire TradePMR, a custody and portfolio management platform for registered investment advisors, as the online brokerage aims to attract a wider range of affluent investors. Robinhood stated in a statement that the transaction, involving approximately $300 million in cash and stock, is expected to be completed in the first half of next year. Through this acquisition, TradePMR's registered investment advisors will have access to Robinhood's clients, who will also be able to easily establish connections with registered investment advisors (RIAs). TradePMR is headquartered in Gainesville, Florida and manages over $40 billion in assets. According to the statement, the TradePMR team will join Robinhood. Robinhood has expanded its product range in the fiercely competitive retail investment field by increasing available cryptocurrencies, launching credit cards, and even providing traders with the option to bet on election results. It also targets clients with more stable wealth levels, attempting to challenge traditional giants such as Charles Schwab Corp. and Fidelity Investments in the rapidly growing wealth management field.