Robinhood (HOOD) - Get Free Report said Tuesday that it will pay $140 million for Say Technologies, a shareholder communications platform used by meme stock favorite AMC Entertainment (AMC) - Get Free Report.
The all-cash deal will bring Say into the Robinhood architecture, the company said, allowing the pair to "find new ways to expand what it means to be an investor through new products and experiences that democratize shareholder access."
"Like Robinhood, Say was built on the belief that everyone should have the same access to the financial markets as Wall Street insiders," the company said in a blogpost. "We share a common goal of eliminating the barriers that keep people from participating in our financial system."
"Say has reimagined investor communications from the ground up, and their products have made it easier for millions of people to have a voice in the companies they invest in," the blog added.
Robinhood shares were marked 0.7% higher in early trading Tuesday to change hands at $57.20 each.
Late Monday, AMC Entertainment took questions from investors during its second quarter conference call that formed part of its new strategy to engage with retail shareholders that now comprise the largest single block of ownership in the movie theatre chain.
"I should point out that this is an experiment, this Say Technologies platform, for us," said CEO Adam Aron. "It works really interestingly, but it only works with some brokerage firms, not all. So many of our U.S. shareholders and especially many of our international shareholders may not have had a chance to ask their questions on this call."
Earlier this spring, AMC launched what it called "AMC Investor Connect", a portal that will allow the its 3.2 million retail investors to 'self-identify' as stockholders and receive what the company calls 'special offers' and updates.
Last month, AMC said its largest institutional shareholder, he China-based Wanda Group, had sold its stake in the group "through normal open market trading to a widely dispersed array of buyers on the New York Stock Exchange" and that two of its directors -- John Zeng and Lincoln Zhang -- would resign their seats on the board over the next 30 days.
AMC added that no single entity having an ownership stake of more than 10%.