FXCM makes Gain Capital takeover offer

FXCM makes Gain Capital takeover offer

Online foreign exchange trading platform FXCM has offered to buy rival Gain Capital for $210.4 million in stock.

FXCM says it sent Gain Capital's board a letter yesterday outlining a deal which would see the latter's shareholders get 0.3996 shares of its common stock for each Gain share.

Based on Monday's closing price, this works out as an offer price of $5.35 per share, a 25% premium on the 8 April closing price. FXCM says it is also prepared to offer up to $50 million in cash instead of shares.

Drew Niv, CEO, FXCM, says: "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."

Gain Capital has yet to respond to the offer.

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