19 January 2018
visit http://response.ncr.com

IG Group to acquire DailyFX from FXCM for $40 million

30 September 2016  |  4534 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.”

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.thomsonreuters.infovisit www.ebaday.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
11330 views comments | 32 tweets | 38 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
10361 views comments | 17 tweets | 18 linkedin
Wells Fargo to close 900 branchesWells Fargo to close 900 branches
9967 views comments | 14 tweets | 16 linkedin
KFC introduces Bitcoin BucketKFC introduces Bitcoin Bucket
9430 views comments | 18 tweets | 16 linkedin
FinTech Scotland appoints new CEOFinTech Scotland appoints new CEO
8525 views comments | 8 tweets | 6 linkedin

Featured job

Competitive base + commission (double OTE)
London, UK

Find your next job