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By Elena Vardon
IG Group Holdings disposed of its Chicago-based futures exchange in a $100 million deal with crypto exchange Kraken parent Payward Inc as it bulks up on its cryptocurrency offerings.
The online trading company on Thursday said the price for Small Exchange–which it bought in 2023–includes $32.5 million in cash and $67.5 million in Payward stock. The sale will result in a 73.3 million pound ($98.2 million) post-tax gain for IG and increase its regulatory capital resources by 22.7 million pounds, it added.
The London-listed group said that the terms of the Small Exchange deal include a partnership with Kraken and the distribution of new crypto products.
IG, which has been developing its crypto strategy, last month announced the acquisition of Australia-based crypto exchange Independent Reserve and secured a cryptoasset license from the U.K.’s Financial Conduct Authority. The group also bought an around 8% stake in crypto infrastructure provider Zerohash via a funding round.
Write to Elena Vardon at elena.vardon@wsj.com