Details of Gain Capital/CMS Forex acquisition unveiled
It is only now that I was thoroughly reviewing Gain Capital’s IPO prospectus that I noticed details the full details

It is only now that I was thoroughly reviewing Gain Capital’s IPO prospectus that I noticed details the full details of the Gain Capital’s acquisition of CMS Forex’s retail business.
Gain Capital received $32 million client assets in this deal and paid $7.99 million immediately plus 15% of future net earning during the next 18 months.
Suggested articles
The FX Global Code – Is Self-Regulation the Future of the Industry?Go to article >>
Join the iFX EXPO Asia and discover your gateway to the Asian Markets
Nice deal for both brokers. This is also goes to show us how do brokers price acquisitions. I have to say that Gain Capital paid more than the industry average which is typically less (or even no) cash upfront and some net earnings sharing afterwards. The reason being is probably Gain’s IPO which came two months later and this deal helped Gain beef up its balance sheet as it paid $8 million cash to receive $32 million in client assets.
Leave a Reply
This deal will have been a huge waste of $8 million bucks if Gain doesn’t let us trade on VT trader soon. I know I haven’t placed a trade on their crappy platform yet. Have you heard anything about when they plan to bring back VT?