Robinhood to acquire X1

Robinhood has entered into an agreement to acquire San Francisco-based X1, a platform that offers a no-fee credit card with rewards on each purchase.

The trading platform said that this deal marks an important step in its journey towards broadening its product offerings and deepening relationship with existing customers.

Robinhood expects the final merger consideration to be approximately $95 million in cash, subject to customary closing adjustments and conditions. The acquisition is expected to close in Q3 2023.

Founded in 2017, X1’s VISA credit card is issued by Coastal Community Bank. It offers a range of benefits including cell phone protection, trip interruption reimbursement, travel and emergency assistance, and extended warranty protection, among other things.

The startup raised $62 million in funding.