StoneX Group Inc. (NASDAQ: SNEX), formerly INTL FCStone, has announced the completion of its planned acquisition of Retail FX and CFDs broker GAIN Capital Holdings, Inc. (NYSE: GCAP). GAIN Capital operated the Forex.com and City Index brands, which now will be folded into StoneX.
The transaction pays GAIN Capital shareholders $6 per share in cash, for a total deal value of $236 million. The transaction was hit with GAIN shareholder pushback earlier this year, as the company’s fortunes turned and Forex.com started throwing off large amounts of cash at the outset of the Covid-19 crisis. However GCAP shareholders eventually voted overwhelmingly in favour of the deal, which has now received final regulatory approval.
Glenn Stevens, CEO of GAIN, commented on the transaction,
“As a result of this combination, GAIN’s customers will benefit from a richer product offering, as well as the expanded resources and greater scale of the combined firm. StoneX, in turn, will add a new digital platform to its global financial network, significantly expanding its offering to retail clients, as well as a complementary futures business. We look forward to a bright future as part of the StoneX Group.”
Sean O’Connor, CEO of StoneX, added,
“This is the beginning of an exciting new era for our company as we add two of the largest and best known retail financial-services trading brands in the world to our global financial services network, in the process more than doubling the number of active retail accounts we serve to 295,000 worldwide. We expect the integration of GAIN’s businesses to drive transaction volumes and create new cross-selling opportunities across all of our platforms – ultimately driving our financial performance in the process.”