TipRanks Joins Prytek in $200 Million Acquisition

Israeli fintech startup TipRanks has announced its acquisition by Prytek, an investment firm that will increase its stake from 40% to 80% through an $80 million investment. This move marks a significant step for both companies, enhancing TipRanks' ability to leverage Prytek's resources and expertise for future growth.

The deal, which sees Prytek acquiring an additional 40% of TipRanks, solidifies its position as the majority stakeholder. Despite this acquisition, 20% of the company’s shares will remain held by existing institutional investors, ensuring a degree of diversified ownership. Prytek had previously been a notable early investor in TipRanks, having led its most recent funding round in April 2021, which raised $77 million. To date, TipRanks has successfully raised a total of $102 million since its founding in 2012.

Founded by Uri Gruenbaum (CEO) and Gilad Gat (CTO), TipRanks provides an innovative stock research platform that democratizes access to alternative datasets for retail investors. Utilizing machine learning and artificial intelligence, TipRanks aggregates publicly available information about stocks and presents it in easily digestible formats. This approach has garnered significant traction, leading to over 6 million active users per month and more than 50 million monthly users through partnerships with banks and brokers worldwide.

The platform serves various financial institutions, including notable names such as Nasdaq, Robinhood, CIBC, Morgan Stanley, and the Israeli trading platform eToro. Nearly every bank and investment firm in Israel utilizes TipRanks' systems, showcasing its strong market presence. TipRanks employs around 120 people and has plans to expand its workforce further in the coming year. The leadership team, including founders Gruenbaum and Gat, is expected to retain their positions under Prytek's ownership, ensuring continuity in leadership as the company embarks on its next growth phase.

The acquisition follows a record year for TipRanks in 2023, characterized by robust organic growth and the successful integration of The Fly, a company specializing in real-time economic and financial news. This acquisition marked TipRanks' inaugural foray into mergers and acquisitions and signifies the beginning of a broader M&A strategy that Prytek is well-equipped to support.

Prytek, founded by Andrey Yashunsky in 2017, is an international fintech company that provides infrastructure and services to banks across nine countries, serving over 250 clients globally. Yair Seroussi, former chairman of Bank Hapoalim, has been leading Prytek as its chairman since inception. The firm boasts a workforce of over 3,000 employees and is well-regarded for its capabilities in integrating and scaling fintech solutions.

Yashunsky expressed his excitement about joining forces with TipRanks, recognizing the potential of investment information and the company’s transformative role in making investment insights and data more accessible. He emphasized Prytek's strong position in financial services, suggesting that the partnership will enhance the value chain for both companies.

Uri Gruenbaum, CEO of TipRanks, acknowledged that the decision to sell control was challenging but ultimately necessary. He noted the company's strong profitability and double-digit growth, revealing that the founders had consistently turned down acquisition offers over the years. However, as some investors sought to liquidate their holdings, partnering with Prytek emerged as a logical choice due to their shared vision, integration capabilities, and positive prior experiences.

The acquisition of TipRanks by Prytek represents a significant development in the fintech landscape, positioning the company for enhanced growth and innovation. With Prytek's extensive resources and industry expertise, TipRanks is well-equipped to expand its market reach, further democratize access to investment insights, and solidify its status as a leading research tool for retail and institutional investors alike. As the partnership unfolds, both companies are set to play a crucial role in shaping the future of investment research and data accessibility in an increasingly competitive market.