Robinhood has agreed to buy no-fee credit card startup X1 for $95 million.

Robinhood Markets, Inc. (NASDAQ: HOOD) has announced its acquisition of X1 Inc., a San Francisco-based platform that offers a no-fee credit card with rewards on purchases. The acquisition is a significant step towards expanding Robinhood’s product offerings and strengthening its relationship with existing customers.

By providing customers with access to a no-fee credit card, Robinhood aims to democratize finance and make it more accessible for everyone. The X1 credit card stands out for its lack of annual fees, late fees, and foreign transaction fees, aligning with Robinhood’s mission to provide a seamless and user-friendly financial experience. (Robinhood)

The final merger consideration is expected to be around $95 million in cash, and the acquisition is projected to be completed in the third quarter of 2023.

Vlad Tenev, CEO and co-founder of Robinhood, said the acquisition would help Robinhood serve all of its customers’ critical financial needs. Deepak Rao, CEO and co-founder of X1, stated that the merger will enhance the credit card experience for customers and aligns with X1’s goal of creating a unique and customer-centric credit card.

As part of the acquisition, the X1 team, including the co-founders Rao and Siddharth Batra, will join Robinhood. Rao will serve as the General Manager of Credit Cards and report to Vlad Tenev.

J.P. Morgan Securities, LLC acted as the exclusive financial advisor to Robinhood in this transaction, and both companies are excited about the future innovations they can bring to their customers together.

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