Freedom Holding Corp. has announced that it has entered into an agreement to acquire the brokerage firm MKM Partners. Under its terms the deal will be paid in cash and FRHC common shares. The transaction must be approved by the US securities regulator, FINRA, for successful closing.
"MKM Partners is a company with more than 30 years of Wall Street experience and expertise in institutional securities trading, exchange trading and market research. It has one of the largest distribution networks in the US, as well as a highly professional analytical team. Through this deal we will be able to strengthen our international operations and expand our presence in the US market", commented Freedom Finance founder and CEO of Freedom Holding Corp. Timur Turlov.
Following the closure, MKM will be led by Robert Votziak as CEO and Sagar Sheth, current president of MKM Partners. "We note certain points of convergence in the business lines of MKM Partners and Freedom, which, in our view, can be a powerful driver of business growth. We hope that by retaining key executives in their positions and MKM Partners' staff, the integration of our companies will go smoothly," says Stephen Messina. - Freedom Holding Corp. - is a dynamic company, the merger with which will provide MKM Partners' team with good growth opportunities".
MKM Partners in numbers:
- 75 employees, including more than 50 distribution specialists and 14 analysts (research strategists)
- over 1000 institutional clients
- 7 research/content categories
- highly diversified revenue mix by client
- revenue of $52.7 million and adjusted earnings of $9.5 million (forecast pre-tax profit in 2021)
- company's stock is up about 28% in 2021
About Freedom Holding Corp.
Freedom Holding Corp. provides financial services in ten countries. Freedom Holding is listed on NASDAQ under the ticker FRHC. Freedom Holding Corp. is regulated by the US Securities and Exchange Commission (SEC). S&P Global Ratings has a rating of B with a stable outlook.