- The acquisition agreement has been approved by the Board of Directors of GAIN and INTL FCStone
- INTL’s products and services will stand as leverage for the improvement of GAIN’s product offerings
INTL FCStone Inc., a financial services company, has recently announced that it has inked an agreement for the acquisition of GAIN Capital Holdings, Inc. that was further approved by GAIN and INTL FCStone’s Board of Directors. INTL FCStone will be acquiring GAIN for about $6 per share in an all cash transaction which would represent an equity value of $236 million.
Under the deal, INTL will look to make an offer at closing for repurchasing $92 million convertible notes of GAIN due 2022. The $60 million convertible notes of GAIN due 2020 is expected to be repaid from its cash on hand before the closing.
Apparently, GAIN caters to over 130,000 institutional and retail investors through City Index and FOREX.com platforms, among several other channels. This combination will help customers of GAIN secure benefits from an enhanced product offering as well as the great scale and expanded resources of the combined company.
After INTL FCStone acquires GAIN, it will be adding a new digital platform to all of its financial networks across the globe, and expand its offering to complementary future businesses and retail clients. The acquisition will help bolster the transaction flows of INTL and increase the client float by $1 billion. The purchase of the digital assets and expertise of GAIN will help boost the digitization of the platform under INTL FCStone.
INTL FCStone’s CEO, Sean O’Connor has said that the company’s products and services will stand as leverage for the improvement of GAIN’s product offerings. Securing extra businesses from the existing clients and enabling the purchase of newer clients will be used to foster the growth of the market share.
The company is capable of improving the margins of transaction flows as clearers. With a combination of transactional flows, the company will be increasing revenue gains as it will cross more spreads and obtain better execution form different markets.