Leading global brokerage FXCM (NASDAQ:FXCM) announced on Monday it has finalized the sale of news and research portal DailyFX to IG Group (LON:IGG) for $40 million. On closing, FXCM received $36 million in cash and will get additional $4 million on completion of certain migration requirements. After the additional $4 million is received, FXCM will have repaid more than half the debt to Leucadia National Corp.
The sale of DailyFX was announced in September and came as a surprise to the industry, as FXCM had not included the news and research portal on its list of assets for sale after the Leucadia bailout. The brokerage drew a $300 million loan from the lender in order to cover clients' losses and meet the minimum capital requirements ($20 million) after the Swiss franc-related crisis from January 2015 . FXCM also had to sell two of its subsidiaries - FXCM Japan Securities and FXCM Asia (aka FXCM Hong Kong) - to Japanese company Rakuten Securities.
“With the close of this deal we have made another positive step towards completing our goal of eliminating the Leucadia debt through the sale of non-core assets and cash generated through operations,” said Drew Niv, CEO of FXCM.
FXCM said its clients will still have access to IG’s DailyFX PLUS and that it will 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.
Meanwhile, the most profitable UK brokerage, IG Group, receives 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.
The FXCM Group is 50.1% majority owned by FXCM Inc. The rest of the group moved to the hands of Leucadia as part of a definitive agreement the two companies signed to amend the conditions of their credit letter agreements. Earlier this month FXCM announced commencement of a $15 million "at-the-market" offering program. The broker says it intends to use the proceeds generated through the program to reduce its outstanding indebtedness to Leucadia and for other general corporate purposes.