Robinhood Markets has agreed to buy X1, a San Francisco platform that offers a no-fee credit card with rewards.
Robinhood said in a press release that it will pay $95 million in cash in a move that should help it expand its product offerings and deepen relationships with existing customers.
The deal is expected to close in the third quarter.
The acquisition “will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs,” Vlad Tenev, Robinhood’s co-founder and CEO, said in the release. “Together with X1, Robinhood will now be able to offer our customers access to credit.”
X1 co-founders Deepak Rao and Siddharth Batra will oversee the acquired business with Rao serving as general manager of credit cards.
J.P. Morgan Securities advised Robinhood.