Overstock.com Buys SpeedRoute and Will Control of 2.5% of U.S. Equity Order Flow

A leading online retailer of consumer retail goods is now entering the equity trading universe.

Overstock.com, through its t0 subsidiary, has decided to purchase SpeedRoute, a financial technology company, which currently routes approximately 2.5 percent of U.S. equity order flow. In comparison, it has been reported that buyside-sponsored trading venue IEX also executes the same amount of order flow in the equity markets.

Overstock.com, also has entered into agreements to acquire a group of other related, privately held financial technology companies, and has closed the acquisition of the assets of one of those companies.

The acquisition of SpeedRoute and its underlying technologies positions Overstock to connect t0 trading to the entire U.S. equity market. The combination of SpeedRoute’s infrastructure and critical mass connectivity with the t0 blockchain software plugged into the U.S. equity markets creates a paradigm-changing moment for capital markets, stated Overstock officials.

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“This merger combines vision with market-leading trading technology and infrastructure that is already accepted across the industry, creating the opportunity for a quantum leap in securities trading and settlement processes,” said SpeedRoute CEO Joseph Cammarata. “This collaboration allows Overstock to enter this new financial technology arena with a speed and aggression that I believe will revolutionize Wall Street, while adding an already profitable and cash-flow positive business right to Overstock’s bottom line. The winners are going to be investors and regulators alike.”

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The total purchase price for the group of businesses will be paid in cash and Overstock common stock.

The majority of the deal closed Wednesday.

The acquisition of certain assets remains subject to regulatory notification requirements. As a result of this transaction, SpeedRoute and its related companies will be held within Overstock’s subsidiary, t0, in which Overstock’s ownership stake increases to 81 percent.