FXCM Signs Agreement to Sell News and Research Website DailyFX for $40 Million
September 30 2016 - 2:00AM
FXCM Inc. (NASDAQ:FXCM) (“FXCM”), a leading online
provider of foreign exchange (FX) trading and related services,
today announced that it has agreed to sell DailyFX, its news and
research website to IG Group (“IG”), a global leader in online
trading, for a price of $40 million. Subject to IG final approval
and customary closing conditions, the transaction is expected to
close by the end of October.
Upon completion, IG will receive the entire DailyFX business
including all international and domestic web domains, source code
and content. 34 employees currently working on DailyFX domains will
also transfer to IG in the transaction. FXCM will continue to be an
advertiser to U.S. and Canadian residents on the DailyFX English
version of the website.
Once the transaction is completed, a transition period for
migration purposes will begin immediately. Cash of $36 million will
be paid to FXCM on closing, with the additional $4 million to be
paid on completion of certain migration requirements.
Proceeds from the sale will be used to repay debt owed to
Leucadia. Following this transaction, FXCM will have made
loan repayments of $157 million to Leucadia with $153 million
outstanding and will have repaid more than half its debt.
“While DailyFX is a high quality asset and was not a targeted
asset to sell, the opportunity came along and it was something we
felt we should take advantage of,” said Drew Niv CEO of FXCM. “At
this time, we do not plan on selling any other retail FX assets and
believe the remaining assets held for sale satisfy the remaining
debt outstanding to Leucadia.”
FXCM strongly believes in education, trading tools and resources
and will continue to offer high quality forex trading education and
provide news and analytics through its FXCM web domains as well as
on the FXCM Trading Station platform and charting package. The
company will continue to offer FXCM clients with proprietary data
and premium resources. In the coming weeks FXCM will be launching
FXCM Plus, a password protected webpage for all FXCM live clients
which will include FXCM’s proprietary data including signals,
sentiment data (SSI), live webinars and technical alerts.
FXCM clients will also still have access to IG’s DailyFX PLUS.
For more information on FXCM's tools and resources, and to open
a demo or live account,
traders can contact an FXCM specialist
at info@fxcm.com or call
1-212-897-7660.
Visit www.fxcm.com and follow us on
Twitter @FXCM,
Facebook FXCM,
Google+ FXCM or
YouTube FXCM.
About Us: FXCM
Inc. (NASDAQ:FXCM) is a publicly traded company which
owns 50.1% of FXCM Group, LLC (FXCM Group).
FXCM Group is a holding company of Forex
Capital Markets LLC, (FXCM US), Forex Capital
Markets Limited, inclusive of all EU branches (FXCM
UK), FXCM Australia Pty. Limited, (FXCM
AU), and all affiliates of aforementioned firms, or other
firms under the FXCM group of companies [collectively "FXCM"]. FXCM
Group is owned and operated by FXCM
Inc. (NASDAQ:FXCM) and Leucadia National Corporation
(NYSE:LUK). Leucadia National Corporation is a multi-billion dollar
diversified holding company engaged through its consolidated
subsidiaries in a variety of businesses.
FXCM is a leading provider of online
foreign exchange (FX) trading, CFD trading, spread betting and
related services. The company's mission is to provide global
traders with access to the world's largest and most liquid market
by offering innovative trading tools, hiring excellent trading
educators, meeting strict financial standards and striving for the
best online trading experience in the market. Clients have the
advantage of mobile trading, one-click order execution and trading
from real-time charts. In addition, FXCM offers educational courses
on FX trading and provides trading tools proprietary data and
premium resources.
FXCM Pro provides
retail brokers, small hedge funds and emerging market banks access
to wholesale execution and liquidity, while providing high and
medium frequency funds access to prime brokerage services via FXCM
Prime.
Trading foreign exchange and CFDs on margin carries a high level
of risk, which may result in losses that could exceed your
deposits, therefore may not be suitable for all
investors. Read full disclaimer.
Contacts
Jaclyn Sales, 646-432-2463
Vice-President, Corporate Communications and Investor Relations
jsales@fxcm.com
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