de | cn | ru

Brokers News

GAIN Capital Finalizes GFT's Acquisition

GAIN Capital Inc., the financial giant behind leading US FX broker FOREX.com, has just announced the official completion of the acquisition of Global Futures & Forex, LTD (GFT). It was about time for the announcement to pop up, as GAIN's management had said as early as April that the transition would be finalized in the third quarter of the year and that deadline was approaching at a fast pace.

 

This is the right time for a recap of some of the financial details of the deal: the overall purchase price of GFT summed up at $107.8 million, of which $40 million was paid in cash, $40 million in a five-year seller note, while the rest was funded with the issuance of some 4.9 million shares of GAIN's common stock. 

 

These may loom as some very impressive numbers had not GAIN published the expected synergies – these are set to reach between $35 million and $45 million in the first full year following the closure of the deal. GAIN says the acquisition itself will be accretive to its earnings in the fourth quarter of the year.

 

Meanwhile, for lovers of numbers and for those who'd like to see how the two businesses combine, GAIN also revealed financial and operating metrics for the first half of the year, explicitly mentioning the results of GFT too. From the data we see that overall revenues for the first six months of the year totaled $190 million, with GFT accounting for $67.2 million of those. Operating metrics were strong too, with GFT also contributing to those: trading volumes until the end of June 2013 reached $3.6 trillion, and GFT accounted for $800 billion of that, with its contribution being relatively equal in both institutional and retail trading terms.

 

We can't wait to see how this combination works out – for the time being, the results are encouraging.

 

 

You can view the complete press release below.

 

GAIN Capital Completes Acquisition of GFT

 

BEDMINSTER, N.J., Sept. 24, 2013 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) (the "Company" or "GAIN Capital") today announced it has completed the acquisition of Global Futures & Forex, LTD ("GFT").

 

"The acquisition of GFT will yield numerous benefits for our clients, partners and shareholders," said Glenn Stevens, Chief Executive Officer of GAIN Capital. "The combined company boasts a deeper global footprint, a robust offering of more than 12,500 financial products, and industry-leading trading technology. We intend to use GFT's broad product offering, innovative tools and educational capabilities to further strengthen our competitive position, while realizing significant synergies from combining the best of both organizations," continued Mr. Stevens. "This transaction is an important strategic step in solidifying our leadership position in the industry." 

 

Pro forma first half 2013 financials include:

 

- Revenue of $190.0 million (GAIN Capital: $122.8 million; GFT: $67.2 million)

- Pro forma trading volume through June 30, 2013 of $3.6 trillion (GAIN Capital: $2.8 trillion; 

GFT: $0.8 trillion)

- Retail OTC: $1.3 trillion (GAIN Capital: $899.1 billion; GFT: $391.3 billion)

- Institutional: $2.3 trillion (GAIN Capital: $1.9 trillion; GFT: $0.4 trillion)

- Pro forma client assets as of June 30, 2013 of $683.8 million (GAIN Capital: $475.6 million; 

GFT: $208.2 million)

 

Highlights of the acquisition include:

 

Operating synergies of $35 million - $45 million in the first full year following closing

Acquisition expected to be accretive to fourth quarter 2013 earnings

 

Under the terms of the transaction, the purchase price is comprised of $40 million in cash, approximately 3.6 million shares of GAIN Capital stock and an approximately $33 million 5-year seller note.  GAIN received approximately $73 million of GFT cash at closing.

 

GFT clients should expect a smooth transition.  GAIN Capital will provide frequent communication as information about enhancements to service and opportunities to access new and updated features becomes available.

 

 

About GAIN Capital

 

GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN's innovative trading technology provides market access and highly automated trade execution services across multiple asset classes to a diverse client base of retail and institutional investors.

 

GAIN's businesses include FOREX.com, which provides retail traders around the world access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices; GTX, a fully independent FX ECN for hedge funds and institutions; OEC, an innovative online futures broker; and GAIN Securities, Inc. (member FINRA/SIPC), a licensed U.S. broker-dealer.

 

GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America,Europe and the Asia Pacific regions.  For further company information, visit www.gaincapital.com.

 

 

 

TAGS: gain capital inc  gain capital forex  forex.com  forex.com broker  gft  gft acquisition  forex acquisition  us forex broker  forex m&a  corporate deals  us forex 

More news about Forex.com

Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia, Cyprus ASIC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Brokers News

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

  Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

  Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD  in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

  Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

Fortrade is the first broker to get an ASIC license in nearly 2 years

Mar 20 2019 15:03:35

  Fortrade acquired a financial services license from the Australian Securities and Investments Commission (ASIC), which hasn’t been very welcoming of new retail forex broker applicants lately. Read more

FP Markets launches a suite of cutting-edge MT4 tools for traders

Mar 06 2019 14:31:42

  FP Markets, a market-leading Forex and CFD provider, launches MT4 Trader Toolbox, a suite of twelve online trading tools which will take their clients’ trading to the next level. Read more

Major broker IG launched its US website

Jan 31 2019 13:15:37

  Global brokerage IG launched its website intended for US retail clients (www.ig.com/us). Residents of the US (with the exception of those in Arizona or Ohio) can now register on the broker’s website in less than 5 minutes and start trading. Read more

de | cn | ru