U.S. Futures Market Giant StoneX Completes RJO Buyout, Achieving Top Rank as Nation's Largest Non-Bank Futures Commission Merchant
StoneX Group Inc. (SNEX) has made a significant move in the financial market by acquiring R.J. O'Brien (RJO), the oldest independent futures brokerage in the U.S. This merger is expected to add $766 million in revenue and $170 million in EBITDA based on 2024 figures from RJO.
The acquisition aims to drive $50 million in expense reductions and unlock another $50 million in capital synergies. The integration is expected to create operational consolidation and cross-selling opportunities between OTC derivatives, physical commodity trading, and fixed income products. This combination is designed to enhance StoneX’s margins, improve return on equity, and be accretive to earnings.
R.J. O'Brien manages over 75,000 client accounts and operates one of the largest networks of introducing brokers. With the addition of nearly $6 billion in client float, StoneX anticipates margin improvements, stronger return on equity, and earnings accretion.
The historic merger leverages over 200 years of combined derivatives expertise and broadens multi-asset and global market capabilities for the combined entity. RJO CEO Gerry Corcoran expresses optimism about maintaining RJO’s client-focused service culture through the acquisition by StoneX.
John O'Brien Jr., representing RJO’s majority shareholders, praises the firm’s 111-year legacy and expresses confidence in StoneX’s commitment to honor that heritage. Sean O'Connor, StoneX's Executive Vice-Chairman, emphasizes this merger as a pivotal moment, highlighting the combined expertise and expanded global financial infrastructure.
StoneX now provides clients with access to nearly all major global derivatives exchanges. R.J. O'Brien clients gain access to StoneX’s suite of services, including OTC hedging, commodity trading and logistics, and fixed income markets.
After hours on Thursday, SNEX rose to $97.60, up 0.37%. On Thursday, SNEX closed at $97.24 on the NasdaqGS, down 0.57%.
Cross-selling between OTC derivatives, commodity trading, and fixed income is expected to create further revenue upside. The acquisition of R.J. O'Brien solidifies StoneX’s position as the largest non-bank Futures Commission Merchant - FCM in the country.
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Investing in the combined entity is anticipated to offer cross-selling opportunities between OTC derivatives, commodity trading, and fixed income, potentially creating further revenue upside. The strategic business move aims to improve StoneX's margins, return on equity, and earnings, positioning the expanded company as the largest non-bank Futures Commission Merchant - FCM in the U.S. finance market.
By acquiring R.J. O'Brien, StoneX Group Inc. strengthens its position with over $6 billion in client float, expected to result in margin improvements, strong return on equity, and earnings accretion, while maintaining RJO’s client-focused service culture.
