TipRanks, a company that leverages AI and data analytics to provide clarity in this space, has been acquired by Prytek for $200 million, reflecting its growing popularity and utility in the financial world.
Prytek will acquire a 40% stake in TipRanks from the founders, employees, and some investors, becoming the controlling shareholder with an 80% total stake, Globes reports.
Financial institutions, including More Investment House and Analyst, will hold the remaining 20%. Shareholders like Moneta Venture Capital, Liwa Capital, and Roni Michaely are selling their shares. TipRanks has raised $45 million and sold $60 million in shares through secondary deals.
TipRanks employs natural language processing and data science to compile datasets and generate insights from the vast online market data.
TechCrunch reports that the platform currently serves approximately 50 million monthly active users. The company’s enterprise clients include prominent names like Nasdaq, Robinhood, and Morgan Stanley.
Prytek has been a significant investor in TipRanks since 2017, leading a $77 million funding round in 2021. Competition from another significant financial news and data provider sparked the acquisition.
TipRanks was founded after its CEO, Uri Gruenbaum, suffered a significant financial loss due to poor investment advice. The company’s annual revenue is estimated at $20 million-$30 million.
Looking ahead, TipRanks plans to expand its offerings by creating localized content for markets in Canada and Europe.
Disclosure: Benzinga and TipRanks have periodically had a limited financial relationship.
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