StoneX finalizes purchase of R.J. O'Brien in business deal
StoneX Group Inc. has announced the completion of its acquisition of R.J. O'Brien, the oldest independent futures brokerage in the United States. This merger significantly expands StoneX's scale and capabilities, solidifying its position as a market leader in global derivatives.
The combined company is now the largest non-bank Futures Commission Merchant (FCM) in the U.S., offering clients access to nearly every major global derivatives exchange and one of the most comprehensive multi-asset platforms in the industry.
Philip Smith, CEO of StoneX, expressed his excitement about the acquisition, stating, "This deal significantly expands StoneX's scale and capabilities, enabling us to leverage extensive expertise and offer enhanced services while improving financial performance through revenue and cost synergies."
Enhanced Client Services
The integration of R.J. O'Brien brings substantial benefits to StoneX's client services. RJO’s clients gain new access to StoneX’s broad range of markets, including over-the-counter (OTC) hedging, physical commodity hedging, financing, logistics services, and deep liquidity in fixed income products.
The merger creates significant cross-sell opportunities in OTC derivatives, commodity trading, and fixed income products, enhancing client service offerings and depth. The combined entity offers clients a more extensive network and leading technologies in OTC hedging, risk management, and trading execution.
Financial Profile
In 2024, R.J. O'Brien generated $766 million in revenue and approximately $170 million in EBITDA. The acquisition adds nearly $6 billion in client float, expected to improve StoneX’s margins, return on equity, and be accretive to earnings.
StoneX targets $50 million in expense reductions and an additional $50 million in capital synergies through operational consolidation, providing both cost savings and capital efficiency.
A Legacy of Excellence
The O'Brien family, the majority shareholders in RJO, are confident that StoneX will carry on the important legacy of both firms while building a leading multi-asset global organization for the future. John O'Brien, Jr., a Board member of RJO, expressed pride in the firm's heritage in the futures industry spanning nearly 111 years.
RJO supports over 75,000 client accounts and serves a global network of approximately 300 introducing brokers ("IBs"), as well as commercial and institutional clients, and individual investors. The firm will continue to provide the same level of outstanding and personalized service, now on a larger scale with more extensive resources.
Gerry Corcoran, Chairman and CEO of RJO, expressed his excitement about the merger, stating it will deliver broader services and greater reach to clients. He believes that the combination of StoneX and R.J. O'Brien is expected to deliver benefits to clients through expanded client networks and leading technologies in OTC hedging, risk management, and trading execution.
In conclusion, the acquisition of R.J. O'Brien by StoneX creates a larger, more diversified, and more capable firm. This merger enables StoneX to leverage extensive expertise and offer enhanced services while improving financial performance through revenue and cost synergies.
The merger between StoneX and R.J. O'Brien significantly enhances client services, providing access to OTC hedging, physical commodity hedging, financing, logistics services, and deep liquidity in fixed income products.
The acquisition is anticipated to improve StoneX’s financial profile, adding nearly $6 billion in client float, expected to improve margins, return on equity, and be accretive to earnings.
The combination of StoneX and R.J. O'Brien offers a legacy of excellence, with RJO's 111-year history in the futures industry and a global network serving over 75,000 clients. This union is expected to deliver broader services and greater reach to clients, leveraging leading technologies in OTC hedging, risk management, and trading execution.
