UK's IG Group to buy DailyFX from FXCM Inc for $40 mln (updated)

Global Brokerage

30/09/2016 08:04

(Adds details) 
    Sept 30 (Reuters) - Online trading company IG Group Holdings 
Plc  IGG.L  said it had agreed to buy news and research portal 
DailyFX and its associated assets from U.S. retail broker FXCM 
Inc  FXCM.N  for $40 million.  
    IG Group said the deal, which is expected to close by the 
end of October, would add about 5 million pounds ($6 million) to 
ongoing operating costs annually and add to earnings from IG's 
2018 financial year.  urn:newsml:reuters.com:*:nRSd2715La  urn:newsml:reuters.com:*:nGNXNHGCLa 
    Upon completion, the DailyFX business along with its web 
domains, source code, content and 34 employees will be 
transferred to IG, FXCM said. 
    FXCM, which is the largest U.S. retail broker, with about 
200,000 customers worldwide and 88,000 in the United States, 
said it would use the proceeds from the sale to repay debt. 
    IG Group, which has over 152,600 active clients according to 
its website, said the deal would "significantly enhance" its 
ability to bring on new clients improve the retention rates of  
current clients.   
    ($1 = 0.7715 pounds) 
 
 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by 
Sunil Nair) 
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; 
Outside UK +91 80 6749 2764; Reuters Messaging: 
noor.hussain.thomsonreuters.com@reuters.net)) 
 
Keywords: DAILYFX M&A/IG GRP HLDGS