IG Group to acquire DailyFX from FXCM for $40 million
30 September 2016 | 4346 views | 0
Source: IG Group
IG Group (“IG”), a global leader in online trading, today announces that it has agreed, subject to final approvals, to purchase DailyFX, a leading global news and research portal, and its associated assets, from FXCM Inc. for a total consideration of $40 million (currently £30.8 million).
It is anticipated that the transaction will complete by the end of October.
This purchase is part of IG’s stated aim of becoming the default choice for active traders globally. DailyFX, through a series of global websites, delivers market-leading education, research, analysis and news, focused predominantly on the FX markets. IG believes this transaction will significantly enhance its ability to acquire new clients and to engage with and improve the retention rates of its current clients.
The DailyFX websites currently support eight languages, English, French, German, Italian, Spanish, Greek, Arabic and Chinese, with the client recruitment centred in related geographic regions. IG will take on ownership of all of the assets associated with delivering the full service to current and potential clients, including journalistic and support staff, subscription lists, source code, all relevant domain names and all intellectual property rights. For an agreed annual fee, FXCM will continue to benefit from advertising on the US site and will take ownership of any US and Canadian domiciled leads that this advertising generates.
On an annualised basis, it is expected that the addition of the DailyFX news and education-based marketing channel will add around £5 million to ongoing operating costs. It is also expected that the purchase price for the assets will be amortised on a straight-line basis over 10 years. It is currently anticipated that this channel will generate a sufficient number of incremental active clients such that it will be earnings enhancing in IG’s FY18 financial year, and will deliver increasing value beyond.
Peter Hetherington CEO of IG said: “We are extremely pleased to have had the opportunity to purchase what we consider to be the leading global client recruitment resource in the FX environment, an asset type where IG is very strong, but historically underweight. This brings to IG an exceptional proven platform for both acquiring new clients and further engaging our entire current global client base, along with a number of very talented people. This transaction further underpins our commitment to continuing to provide the best client experience in our industry.”