Gain Capital Holdings Inc. (NYSE: GCAP), which provides online trading services, has received a proposal from FXCM Inc. (NYSE: FXCM) to acquire the company in an all-stock transaction valued at $210.4 million.
The proposal would allow FXCM to acquire Gain for 0.399 share of FXCM Class A common stock for each share of Gain common stock. That agreement values Gain’s stock at $5.35 per share. Gain’s shares closed at $4.27 before the announcement, and were trading up to about $5.50 mid-day after the proposal was received.
Gain’s board of directors will consider the proposal. The company runs Forex.com, which provides retail traders access to over-the-counter financial markets. Gain provides execution, clearing, technology products and other services to its customers.
FXCM also provides online Forex trading services, primarily to retail customers. The company says it has significant synergies with Gain, and that the combination could create an industry leader.
Barclays and Financial Technology Partners are FXCM’s financial advisers, while Simpson Thatcher & Barlett LLP are legal counsel. Fore more on the deal, see Trader's Magaine's article.
On April 1, the Nasdaq Group Inc. (Nasdaq: NDAQ) announced it is buying ESpeed, which provides electric trading technology, for $750 million.