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(Sharecast News) - Plus500 said on Tuesday that it has agreed to buy regulated Brazilian broker-dealer Guru for an undisclosed sum.
The acquisition will further accelerate Plus500's growth strategy in Latin America, building on its existing B2B partnership with Nelogica and its local presence in Colombia, the company said.
Guru is a registered broker-dealer, regulated by the Central Bank of Brazil (BCB) and the Securities and Exchange Commission of Brazil (CVM). Plus500 said the company's local expertise will accelerate growth and enable the delivery of new products and services to local customers, and its regulatory framework will allow the group to build and broaden its local offering to include Brazilian stocks, futures, options and fixed income securities.
No financial details were disclosed but Plus500 said the acquisition will be funded entirely from existing cash resources of more than $860m as of 30 June.
Chief executive David Zruia said: "Brazil is one of the world's most attractive trading markets, and acquiring Guru gives us the licence, the experienced local team and the regulatory framework to thrive.
"By combining our proprietary technology and multi-asset trading expertise with our recently announced Nelogica partnership, we can now offer a far broader range of products, including access to US derivatives. This is another clear step in our value creation strategy to deepen our offering and reach new markets."
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