GAIN Capital Holdings (NYSE:GAIN) has completed the acquisition of U.K. brokerage City, Index. The combined company will have over $1.1 billion in customer assets with annual trading volumes of more than $3 trillion.
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.
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 closing of this 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.
GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN Capital'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.
City Index is a leading spread betting and CFD provider, offering competitive spread and margin access on thousands of markets and committed to providing a market-leading client services, transparent prices and innovative technology.