Robinhood acquires Say Technologies for its first acquisition since its IPO

Text size

Robinhood Markets

makes its first acquisition as a public company.

The trading site said on Tuesday it had agreed to buy all of Say Technologies for around $ 140 million in cash. Robinhood (ticker: HOOD) announced the deal in a blog post by Aparna Chennapragrada, its product manager. It is not clear when the deal is expected to close.

A Robinhood spokesperson declined to comment. The stock fell about 1% to $ 56.20 in morning trading after the news broke.

Say provides a communication platform that aims to help shareholders participate in proxy voting. Using Say’s technology, investors can vote and view documents, ask questions of management, and provide comments.

The New York-based company has raised $ 8 million in funding, according to PitchBook. Investors include Point72 Ventures, the venture capital investment arm of Steve Cohen.

Say has redesigned communications with investors, making it easier for millions of people to have a say in the companies they invest in, Chennapragrada said. “Like Robinhood, Say was built on the belief that everyone should have the same access to the financial markets as Wall Street insiders. We share a common goal of removing the barriers that prevent people from participating in our financial system, ”said Chennapragrada.

“We founded Say to give investors a better way to engage with the businesses they own and to give businesses the tools to better understand and access their investors,” said Alex Lebow, Co-Founder and CEO from Say Technologies, in the blog post. “As a member of the Robinhood family, we will be able to pursue our goal of creating a new ecosystem of ownership and engagement for the benefit of all investors and businesses. ”

Robinhood’s business strategy may require it to make acquisitions or investments in specialist employees or other compatible companies, products or technologies, depending on a regulatory record. The company bought media firm MarketSnacks in 2019 and Binc, a recruiting firm, in March.

Robinhood had a pro forma total of approximately $ 6.4 billion in cash and cash equivalents on its balance sheet, including the sale of shares during the IPO, as of March 31.

Robinhood’s acquisition of Say comes less than two weeks since the trading app went public on July 30 at $ 38 per share. The stock fell 8% in its first day, but rebounded for a gain of almost 51% from its offer price.

Known for allowing young investors to buy and sell meme stocks, Robinhood is now considered a meme stock itself. Trading is expected to remain volatile.

One of Say’s clients is

AMC Entertainment Holdings

(AMC), another stock of memes. The movie chain planned to use the technology to allow shareholders to submit and vote on questions to be answered in its second quarter earnings call on Monday, AMC said ahead of the call.

Write to Luisa Beltran at [email protected]