Faros M&A Details Announced As FXCM Reports Q3 Results

As Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reported in September of this year, FXCM announced that it had acquired a 50.1% stake in American FX intelligence and market coverage company, Faros Trading LLC.

At the time, the NYSE-listed firm had not disclosed the financial terms surrounding its acquisition of Faros Trading, but on FXCM's quarterly report filed today to the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) the company had to disclose all the details of the deal.

According to FXCM's SEC quarterly report, the company provided an initial cash payment of $5 million as an initial payment, and a follow-on payment to be made in 2015 in an amount to be determined based on Faros' ability to meet its projected performance, estimated at $10.6 million on the Faros acquisition date for a possible maximum total estimated purchase price of $15.6 million .

According to the terms of the Faros purchase agreement mentioned in the report, the follow-on payment is payable partly in shares of FXCM common stock to one of the Faros sellers.