GAIN Capital Holdings, Inc. (NYSE: GCAP) has received overwhelming support and subsequent approval from its shareholders, formally facilitating the acquisition of FX, CFD, and UK spread betting firm, City Index Limited in a recent shareholders meeting March 12, 2015, according to a GAIN Capital statement.
Back in the end of October 2014, GAIN Capital (NYSE:GCAP) formally entered into an agreement to acquire City Index Ltd for $118 million, with a net purchase price of $82 million, including $36 million in cash.
In terms of voter specifics from the shareholders meeting, the acquisition received widespread support anointing the transaction. This was represented by a turnout of 93% of all outstanding shares attending the special meeting with over 99% of such shares voting in favor of the transaction.
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Following the acquisition, the newly combined entity of GAIN Capital (NYSE: GCAP) and City Index Limited will boast a service to 235,000 retail customers across 180 countries, comprising an annual trading volume numbered at more than $3 trillion.
According to Glenn Stevens, CEO of GAIN Capital (NYSE: GCAP) in a recent statement on the shareholder approval, “we are extremely pleased that our shareholders have recognized the compelling strategic and financial rationale for this transaction. The City Index acquisition is another important milestone in the execution of GAIN’s long term strategic plan, which includes scaling the retail business and diversifying our revenue streams across products, geographies and customer segments. We believe it will be a transformational combination for the company and the industry.”
The approval of the transaction by GAIN’s shareholders was one of the final hurdles needed to consummate the previously announced deal. GAIN Capital (NYSE: GCAP) portends the transaction to close in early Q2 2015.
According to Forex Magnates researchers, GAIN Capital’s (NYSE: GCAP) stock has risen from $8.56 per share before the announcement of the acquisition on October 31, 2014 to trade at $10.12 per share at the time of writing, up 18.22% YTD.