GAIN Capital Holdings, Inc.has announced it has completed the acquisition of City Index, a leading online trading firm specializing in contracts for difference (CFDs), forex and UK spread betting.
The combination of GAIN Capital and City Index creates a global leader in online trading, operating two market-leading brands in GAIN’s FOREX.com, a top retail forex brand globally, and City Index, a premier CFD and spread bet brand. The combined company will have over $1.1 billion in customer assets with annual trading volumes of more than $3 trillion.
“The closing of this significant transaction marks another major milestone in the growth of GAIN Capital and we are excited by the complementary strengths that have been brought together through this combination,” commented Glenn Stevens, CEO of GAIN Capital. “The scale, scope of products and geographies served and market leading technology provided by the combined company provides us with an excellent platform for continued growth and success,” Mr. Stevens concluded.
The aggregate purchase price was approximately US$148 million, consisting of approximately US$36 million in cash (which reflects approximately US$21 million of excess regulatory capital at City Index), 5,319,149 shares of Company common stock and US$60 million in convertible loan notes issued by the Company. The net purchase price paid was approximately US$77 million, reflecting US$71 million of cash on City Index’s balance sheet as of the closing date.