Robinhood, a U.S. trading and investing service, announced today that it would acquire Say Technologies in a $140m cash deal.According to Crunchbase data, Say Technologies has raised $8 million. PitchBook data shows that the company's value was $28 million post-money, which means that backers received a 5x return on their investment.Point72 Ventures was one of the investors in Say.Robinhood's first major purchase since its public listing in July is noteworthy. It also illustrates Robinhood's potential investment plans. A company can easily buy other companies if it has recharged cash balances or a floating stock.Robinhood stated in a blog that Say was founded on the belief of everyone having equal access to financial markets. Say has created a communication platform that allows smaller shareholders to ask questions of the companies they invest in. While some companies include retail questions in earnings calls, Say's vision is much larger.It is possible to see how Robinhood and Say might work together. Robinhood is used by a large number of retail investors who are interested in investing and trading. Say uses technology to connect retail investors with the companies they own. Robinhood's database of retail investors and Says communications technology allows the trading platform to provide a better experience for shareholders than other platforms.Robinhood offers a unique approach to retail investing by offering its users a service similar to what Say has created. This is similar to Spotify spending a lot to acquire exclusive rights to podcasts. These efforts distinguish Spotify from its competitors despite the fact that it has a commodity core offering. Robinhood's layering of specialized services on top its investment service is a smart move. This may help drive user loyalty and new-user additions.Robinhood shares are down around 1.2% today despite generally higher markets. Although it is possible to say that investors sold lightly after the news, this would be an inaccurate interpretation of trading on the day.
