Invast Securities Reveals M&A CyberAgent Deal, Generates ¥2,244 Million Profit

Japanese FX firm Invast Securities has today announced corporate partition with CyberAgent FX, and has sold investment securities resulting in

Japanese FX company Invast Securities has today announced that it took a decision to sell some of its investment securities in the form of one listed stock.

Takeshi Kawaji, President of Invast Securities
Takeshi Kawaji, President of Invast Securities

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According to the company, this resulted in what Invast Securities is referring to as an “extraordinary profit” of ¥2,244 million, which the company will recognize on the sale of these particular investment securities in consolidated results for the third quarter of the fiscal year ending March 2014.

Expansion Through Mergers and Acquisitions

Additionally, Invast’s Securities President, Takeshi Kawaji today provided extensive details surrounding its most recent merger and acquisition deal with compatriot CyberAgent FX.

According to information released today by Invast Securities, the schedule for the absorption-type corporate partition Approval of the Board of Directors of Invast Securities takes the form of an absorption-type corporate partition agreement between Invast Securities and CyberAgent FX, which will come into effect on March 2, 2014.

As of 30 September, 2013, Invast Securities has stated publicly that CyberAgent FX held 4,784,400,239 Yen on the clients’ guarantee deposits as well as approximately 120,000 individual accounts on Click 365.

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“The true picture of this deal is that most of the 120,000 accounts are for OTC FX traders rather than Click365 traders. CyberAgent FX has been recommending that its clients open both OTC accounts as well as Click365 accounts when a new client opens up an account.  Since that particular company’s main business is OTC FX, most of the 120,000 accounts came in the form of OTC accounts.  However, since we are buying the whole Click365 business from CyberAgent FX, transferring accounts will be the whole 120,000 which of most are OTC traders.”

” These 120,000 accounts will be our potential target for cross selling Mirror Trader ST24, and our OTC businesses as well,” he added.

Mr. Kawaji concluded by confirming in US dollar value, the realization of investment stock. “Also, we have disclosed that we realized an extraordinary profit of about $21.7million by selling one unit of our investment equity stock.  We are not stating which stock that is being sold, however, if you see our financial statement, it is clear that the equity being sold is JPX, Japan Exchange, the major equity exchange in Japan,” he said.

In somewhat of a contrast to Japan’s very much domestic market orientated FX landscape, Mr. Kawaji explained last year to Forex Magnates that the company had embarked on an expansion program to take it overseas into western markets, such as Australia and the UK.

Invast Securities has previously retained its earnings guidance figures internally, and does not publish them, as its management team considers that earnings are greatly affected by the ever-changing conditions in the market, however, the monetary value attained as a result of the sale of these securities serves as a yardstick that Japan’s retail FX firms remain among the very upper echelons of the industry, despite the boom which was experienced in the first half of this year having tailed off somewhat.


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