FXCM Proposes Acquisition of Gain Capital

Combined Company Expected to be Accretive to All Parties

Conference Call Scheduled for 8:15 a.m. on Tuesday, April 9, 2013

Proposed Acquisition Highlights:

• Would create an industry leader with potentially significant benefits of improved scale economics
• Pro forma 2012 revenues of ~$569 million, client assets of ~$1.6 billion⁽¹⁾ and estimated post-synergy run-rate Adjusted EBITDA of between ~$163 and ~$183 million⁽²⁾
• Potential significant operating synergies which can potentially drive between $50 and $70 million in incremental run-rate EBITDA once integration is complete
• Potential capital synergies could result in the release of between $80 and $100 million in currently restricted cash
• Projected to be accretive in 2014 after excluding one-time restructuring cost

NEW YORK–(BUSINESS WIRE)– FXCM Inc. (“FXCM“) (NYS: FXCM) , a leading online provider of foreign exchange, or FX, trading and related services, today announced it is proposing to merge with and acquire Gain Capital Holdings LLC (“GAIN”) (NYS: GCAP) .

The proposal was communicated this evening in a letter from FXCM to Gain’s Board of Directors, to inform them of FXCM‘s desire to reach agreement on a transaction that would create the 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 …read more

Source: FULL ARTICLE at DailyFinance