Retail FX and CFD broker Plus500 Ltd (LON:PLUS) has conditionally agreed to acquire the entire share capital of Mehta Equities Limited, an Indian financial services company providing, inter alia, broking services including futures, options and cash equities trading products.

The completion of the Acquisition is subject to the receipt of certain regulatory approvals and other closing conditions.

The consideration is for approximately $20m, which will be funded from Plus500’s existing cash balances of approximately $890m as of 31 December 2024 and paid upon completion, subject to certain adjustments.

The Acquisition enables Plus500 to expand its geographic footprint into India’s large and well-established financial industry, including futures trading. The Acquisition provides a compelling opportunity for Plus500 to strengthen its growing global futures offering and drive value-accretive growth by leveraging its market-leading, proprietary technology, best-in-class customer support and in-depth knowledge in the futures market.

Mehta was established in 1995 by Rakesh Mehta. It has grown its operations to include Brokering (futures, options, and cash equities), Portfolio Management Services (Customer Portfolio Management), Investment Banking (Capital Raising, IPOs and M&A) and other custodian services.

Mehta is regulated by the Securities and Exchange Board of India (SEBI). It holds memberships of the following exchanges: National Stock Exchange (“NSE”), the Bombay Stock Exchange (“BSE”), the Multi Commodity Exchange (“MCX”), the Metropolitan Stock Exchange of India (“MSE”) and the National Commodity and Derivatives Exchange (“NCDEX”). It also holds a clearing membership with the Indian Clearing Corporation (“ICCL”).

Mehta is operated by a highly experienced management team and is led by its respected founder, Rakesh Mehta, who will continue to be part of the business following the completion of the Acquisition.

David Zruia, CEO of Plus500 commented:

“We are thrilled to announce this acquisition in India, which marks a significant milestone in our global expansion strategy. By combining Plus500’s cutting-edge technology with Mehta’s local presence and expertise, we aim to accelerate growth and unlock new opportunities in this dynamic and fast-growing market.

This acquisition aligns with our vision to strengthen our position as a leading multi-asset fintech group, providing seamless and innovative access to financial markets worldwide. We are excited to embark on this journey with Mehta’s team and create long-term value for our stakeholders”.

Rakesh Mehta, Chairman of Mehta, commented:

“We are proud and excited to be joining a well renowned and established global fintech group such as Plus500. We look forward to a successful future together as we work collectively to grow the businesses and take them to the next level”.