FXCM, an online provider of foreign exchange trading and related services, announced today that it has closed on its sale of DailyFX, its news and research portal, to IG Group, a provider of online trading, for a total of $40 million.
The deal, which was announced in September, came as a surprise to the industry at the time, as FXCM had not included the online trading news portal on its list of assets for sale after the Leucadia bailout which the company was forced to take in the aftermath of the SNB crisis.
We have made another positive step towards completing our goal of eliminating the Leucadia debt.
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With today’s announcement, $36 million was paid to FXCM on closing, with an additional $4 million payable on completion of certain migration requirements.
As previously stated by the U.S. headquartered brokerage, FXCM’s proceeds from the sale were used to repay debt owed to Leucadia. The company has made loan repayments of $154 million to Leucadia with $156 million outstanding. After the additional $4 million is received, FXCM will have repaid more than half the debt.
Drew Niv, CEO of FXCM, commented: “With the close of this deal we have made another positive step towards completing our goal of eliminating the Leucadia debt through the sale of non-core assets and cash generated through operations”.
Quayle Munro, an independent mergers and acquisitions advisory firm, served FXCM as advisors on the deal.