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FXCM proposes acquisition of Gain Capital

First Published 9th April 2013

FXCM offers to buy rival Gain Capital Holdings in deal worth $210.4 million

Drew Niv, CEO, FXCM

Drew Niv, CEO, FXCM

"FXCM believes that the substantial potential operating and capital synergies between the two companies would result in an accretive deal with a strong growth profile and improved economies of scale."

FXCM, the online FX provider, has announced it is proposing to merge with and acquire Gain Capital Holdings LLC.

FXCM sent the proposal to Gain's Board of Directors on April 8, 2013, requesting their agreement on a transaction that aims to create an industry leader in online FX trading.

"FXCM believes that the substantial potential operating and capital synergies between the two companies would result in an accretive deal with a strong growth profile and improved economies of scale," said Drew Niv, CEO of FXCM. "Additionally, FXCM believes customers of both FXCM and Gain will greatly benefit from the expected improvement of financial strength and stability of the combined entity."

"This proposed merger is the highest priority for FXCM, and we hope that Gain is as excited as we are about the potential a combined company could have."

The proposed transaction would give Gain shareholders 0.3996 shares of FXCM Class A common stock for each share of Gain common stock. Based on FXCM's closing price of $13.39 on Monday, April 8, 2013, this results in an offer price of $5.35 per share of Gain common stock, which in aggregate would represent $210.4 million in total value. This price represents a 25% premium to Gain's closing share price on April 8, 2013. FXCMis also prepared to offer up to $50 million in cash consideration in lieu of FXCM shares.