Merger QFTA.U

Online Broker TradeStation Going Public Via Merger with Quantum FinTech Acquisition Corp

, SPAC Research

TradeStation Group, Inc. and Quantum FinTech Acquisition Corp (NYSE: QFTA) announced today that they have executed a definitive business combination agreement through which TradeStation will become a publicly traded, NYSE-listed company under the ticker symbol “TRDE.”

TradeStation’s management team, including John Bartleman, President, Chief Executive Officer and member of TradeStation’s Board of Directors, will continue to lead the company following completion of the transaction.

Assuming no redemptions, the transaction will provide approximately $316 million of cash prior to payment of expenses, consisting of the contribution of approximately $201 million of cash held in QFTA's trust account, and a $115 million PIPE.

The PIPE includes investments of $50 million from Monex and $50 million from Galaxy Digital, which is affiliated with Galaxy Digital Holdings Ltd., XBTO Ventures, LLC and Appian Way Asset Management.

The structure of the business combination involves a merger between a newly-formed subsidiary of TradeStation and QFTA, with QFTA surviving the merger and becoming a wholly-owned subsidiary of TradeStation.

The transaction values the combined company at an implied pro forma enterprise value of approximately $1.43 billion.

Simpson Thacher & Bartlett is acting as legal advisor and BofA Securities is acting as sole financial advisor and capital markets advisor to TradeStation.

Winston & Strawn is acting as legal advisor and Piper Sandler is acting as financial advisor to QFTA.

Piper Sandler is also acting as lead placement agent on the PIPE, and Latham & Watkins is acting as placement agent counsel.

The transaction is expected to close in the first half of 2022.

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