Plus500 (LSE:PLUS) announced it has agreed to acquire full ownership of Guru, a regulated broker-dealer in Brazil, marking its entry into Latin America's largest economy.
The London-listed trading platform operator, which runs proprietary technology-based platforms across OTC and non-OTC products, said the deal gives it a direct local presence in a market it called one of the world's most dynamic for retail trading.
Guru is regulated by the Central Bank of Brazil and the Securities and Exchange Commission of Brazil, a licence Plus500 said will let it broaden its local offering to include Brazilian stocks, futures, options and fixed income securities.
Plus500 said it will fund the acquisition entirely from existing cash resources, which stood at more than $860m as of 30 June, with consideration payable on completion.
The deal builds on Plus500's existing B2B partnership with Nelogica and its presence in Colombia, and the company said it will keep pursuing further growth across Latin America both organically and through acquisitions.
It is Plus500's second acquisition in roughly a week, following its recently announced purchase of US-based Hedge.
"Brazil is one of the world's most attractive trading markets, and acquiring Guru gives us the licence, the experienced local team and the regulatory framework to thrive," said David Zruia, chief executive officer, adding that combining the acquisition with the Nelogica partnership would let the group offer a broader product range, including access to US derivatives.
Read more about Plus500