Robinhood Markets, Inc. has entered into an agreement to acquire San Francisco-based X1 Inc., a platform that offers a no-fee credit card with rewards on each purchase.

Robinhood expects the final merger consideration to be approximately $95 million in cash, subject to customary closing adjustments and conditions. The acquisition is expected to close in Q3 2023.

“This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit,” said Vlad Tenev, CEO and co-founder of Robinhood.

“When founding X1, we set out to create a different kind of credit card with an unparalleled experience for customers, similar to Robinhood’s mission to make our financial markets more accessible to all. We share the same ethos and joining together with Robinhood we’ll be able to offer an enhanced credit card experience,” said Deepak Rao, CEO and co-founder of X1.

Robinhood is bringing the X1 team onboard to Robinhood. X1’s co-founders Deepak Rao and Siddharth Batra will oversee this new business for the company, with Rao serving as GM of Credit Cards. He will report to Robinhood CEO and Co-Founder Vlad Tenev.

J.P. Morgan Securities, LLC served as exclusive financial advisor to Robinhood.