Online Brokerage TradeZero Said in Merger Talks With Dune SPAC

(Bloomberg) -- TradeZero Holding Corp., an online brokerage that provides free and subscription-based software for stock trading, is in talks to merge with Dune Acquisition Corp., a blank-check firm, according to people with knowledge of the matter. 

Terms are in flux, but if a transaction is finalized, it may be announced in coming weeks, the people added. It’s still possible talks could fall apart. 

Representatives for Nassau, Bahamas-based TradeZero and West Palm Beach, Florida-based Dune declined to comment. 

TradeZero, led by Chief Executive Officer Dan Pipitone, offers commission-free stock trading, short selling, free limit orders, and other services, its website shows. The company makes money in part from rebates paid for order flow by market centers including EDGX, ARCA and Nasdaq, and is planning on expanding its options offerings from single- to multi-legged trading. 

Dune, led by CEO Carter Glatt, raised $172.5 million in a December initial public offering. The SPAC has said it will focus on finding a target in the technology sector, specifically companies pursuing a software-as-a-service model.

During the pandemic, retail investors stormed into financial markets, propelling the revenue of brokerages including Robinhood Markets Inc., which itself became a meme stock following its August initial public offering. Other companies with brokerage arms such as Interactive Brokers Group Inc. and Charles Schwab Corp. posted stock gains over the past 12 months that outpaced the S&P 500 Index. 

Stock brokerage EToro in March agreed to go public through a blank-check firm merger, while cryptocurrency exchange Bakkt Holdings LLC inked a SPAC deal in January. 

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