As Forex 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.
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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 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.