Leading US forex broker FXCM (NASDAQ:FXCM) announced on Friday it has signed an agreement to sell its trading news and research portal DailyFX to the most profitable UK brokerage, IG Group (LON:IGG), for $40 million. The deal is expected to close by the end of October as it is subject to final approval and closing conditions by the buyer.
FXCM intends to use the proceeds from the deal to repay the outstanding part of the loan it owes to Leucadia National Corp. Following the transaction, it will have made loan repayments of $157 million to Leucadia with $153 million still outstanding.
We remind you that in the aftermath of the Swiss Franc spice, FXCM drew a $300 million loan from the lender in order to cover clients' losses and meet the minimum capital requirements ($20 million). The brokerage also had to sell two of its subsidiaries - FXCM Japan Securities and FXCM Asia (aka FXCM Hong Kong) - to Japanese company Rakuten Securities.
Once the transaction is closed, FXCM will receive $36 million in cash immediately, while the additional $4 million will be paid on completion of certain migration requirements. IG Group, on the other hand, will receive the entire DailyFX business including all international and domestic web domains, source code and content, in addition to all 34 employees currently working on DailyFX domains, as well as all intellectual property rights.
FXCM said it will continue to be an advertiser to US & Canadian residents on the English version of dailyfx.com and that FXCM clients will still have access to IG’s DailyFX PLUS. The broker will also continue to offer financial news, analytics, and forex education resources through its web domains, as well as on the FXCM Trading Station platform. Besides, the company will soon launch FXCM Plus, a password protected webpage for all FXCM live clients which will offer signals, trader sentiment data (SSI), live webinars and technical alerts.
“While DailyFX is a high quality asset and was not a targeted asset to sell, the opportunity came along and it was something we felt we should take advantage of,” commented Drew Niv, CEO of FXCM. “At this time, we do not plan on selling any other retail FX assets and believe the remaining assets held for sale satisfy the remaining debt outstanding to Leucadia,” he added.
DailyFX is one of the most popular websites among both retail and institutional traders, as it offers up-to-date financial news and fundamental & technical analysis 24 hours a day in 8 languages. The website provides in-depth coverage of forex price movements, forecasts, as well as all-embracing analysis of important economic and political events and data. What is more, dailyfx.com delivers one of the best economic calendars available, advanced charts, trading signals, as well as forex trading course and discussion forum. On top of that, DailyFX is free of charge.