GAIN Capital Completes GFT Acquisition - $40 million in Cash Plus Extras
- GAIN Capital has confirmed that it has completed the acquisition of GFT in one of the most exciting buyouts of the year. GAIN paid $40 million in cash, issued 3.6 million shares of GAIN Capital’s stock and a $33 million 5-year seller note.
After five months of anticipation, GAIN Capital has finally announced that it has completed its acquisition of GFT. The listed FX broker announced in a notification, that it had acquired the Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets. Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets. Read this Term broker for $40 million in cash, as well as shares of GAIN Capital and a five-year seller note.
In the official press release, CEO of GAIN Capital, Glenn Stevens stated, "This transaction is an important strategic step in solidifying our leadership position in the industry."
GAIN Capital, a leading global financial services firm has been gradually extending its global footprint through its expansion plan over the last decade. The latest acquisition highlights the firm's commitment to develop itself as a multi-asset broker, through the acquisition, GAIN will offer traders a substantial 12,500 financial instruments to trade from.
GAIN Capital paid $40 million in cash for GFT, in addition, GFT received approximately 3.6 million shares of GAIN Capital stock and a $33 million 5-year seller note, and in return GAIN received $73 million in cash at closing.
Metrics:
GAIN published its metrics (Pro forma - assuming that the deal closed on the 1st of January, 2013) for the first 6 months of 2013, these include GFT’s details:
- Revenue of $190.0 million
GAIN Capital: $122.8 million; GFT: $67.2 million
- Trading volume through June 30, 2013, $3.6 trillion
GAIN Capital: $2.8 trillion; GFT: $0.8 trillion
- Retail OTC: $1.3 trillion
GAIN Capital: $899.1 billion; GFT: $391.3 billion
- Institutional: $2.3 trillion
GAIN Capital: $1.9 trillion; GFT: $0.4 trillion
- Client assets as of June 30, 2013, $683.8 million
GAIN Capital: $475.6 million; GFT: $208.2 million
GAIN Capital's share price is trading in the green, at 11.98.
Glenn Stevens, CEO GAIN Capital
“The acquisition of GFT will Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term numerous benefits for our clients, partners and shareholders," said Glenn Stevens, Chief Executive Officer of GAIN Capital. "The combined company boasts a deeper global footprint, a robust offering of more than 12,500 financial products, and industry-leading trading technology. We intend to use GFT's broad product offering, innovative tools and educational capabilities to further strengthen our competitive position, while realizing significant synergies from combining the best of both organizations," Stevens concluded.
GAIN Capital informed its clients about the acquisition in an email notification, stating, "As we begin the integration process, it will be 'business as usual.' All aspects of your relationship with GAIN remain the same. There will be no change to the way you or your customers trade, your commercial terms, the GAIN group entity which is counterparty to your trading activity, or the level of service you receive. You will have access to the same team, and we will make every effort to ensure that your everyday interactions with us go smoothly."
After five months of anticipation, GAIN Capital has finally announced that it has completed its acquisition of GFT. The listed FX broker announced in a notification, that it had acquired the Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets. Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets. Read this Term broker for $40 million in cash, as well as shares of GAIN Capital and a five-year seller note.
In the official press release, CEO of GAIN Capital, Glenn Stevens stated, "This transaction is an important strategic step in solidifying our leadership position in the industry."
GAIN Capital, a leading global financial services firm has been gradually extending its global footprint through its expansion plan over the last decade. The latest acquisition highlights the firm's commitment to develop itself as a multi-asset broker, through the acquisition, GAIN will offer traders a substantial 12,500 financial instruments to trade from.
GAIN Capital paid $40 million in cash for GFT, in addition, GFT received approximately 3.6 million shares of GAIN Capital stock and a $33 million 5-year seller note, and in return GAIN received $73 million in cash at closing.
Metrics:
GAIN published its metrics (Pro forma - assuming that the deal closed on the 1st of January, 2013) for the first 6 months of 2013, these include GFT’s details:
- Revenue of $190.0 million
GAIN Capital: $122.8 million; GFT: $67.2 million
- Trading volume through June 30, 2013, $3.6 trillion
GAIN Capital: $2.8 trillion; GFT: $0.8 trillion
- Retail OTC: $1.3 trillion
GAIN Capital: $899.1 billion; GFT: $391.3 billion
- Institutional: $2.3 trillion
GAIN Capital: $1.9 trillion; GFT: $0.4 trillion
- Client assets as of June 30, 2013, $683.8 million
GAIN Capital: $475.6 million; GFT: $208.2 million
GAIN Capital's share price is trading in the green, at 11.98.
Glenn Stevens, CEO GAIN Capital
“The acquisition of GFT will Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term numerous benefits for our clients, partners and shareholders," said Glenn Stevens, Chief Executive Officer of GAIN Capital. "The combined company boasts a deeper global footprint, a robust offering of more than 12,500 financial products, and industry-leading trading technology. We intend to use GFT's broad product offering, innovative tools and educational capabilities to further strengthen our competitive position, while realizing significant synergies from combining the best of both organizations," Stevens concluded.
GAIN Capital informed its clients about the acquisition in an email notification, stating, "As we begin the integration process, it will be 'business as usual.' All aspects of your relationship with GAIN remain the same. There will be no change to the way you or your customers trade, your commercial terms, the GAIN group entity which is counterparty to your trading activity, or the level of service you receive. You will have access to the same team, and we will make every effort to ensure that your everyday interactions with us go smoothly."