The sale continues

Jeffries Acquires FXCM Inc Institutional Unit Faros Trading

The deal was closed for an undisclosed sum, as FXCM made an initial payment of $5 mln back in 2013

According to an announcement made by the wholly owned subsidiary of Leucadia National, Jefferies Group LLC, it has acquired from FXCM Inc (NYSE:FXCM) Faros Trading. The company which was acquired by FXCM in 2013, is dedicated to FX intelligence and market coverage for the institutional side of business.

Jeffries details that the purchase will boost the institutional foreign exchange unit if the company. As part of the acquisition the CEO of Faros Trading, Ray Kamrath, will be appointed as Global Head of Foreign Exchange at Jeffries. Jefferies’ existing foreign exchange business and Faros will operate as a single team.

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Commenting in the announcement the Global Head of Fixed Income at Jefferies, Fred Orlan, said, “We are very pleased to expand our capabilities in foreign exchange. With major changes in these markets, we believe that there is a significant opportunity to provide clients with transparent advice, best-execution and market-expertise.”

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“Our foreign exchange effort will be closely coordinated with our global rates capabilities, in order to provide clients with a full-service macro offering,” he explained.

There have been no details about the price of the transaction, however, estimates in 2013 suggest that the maximum consideration by FXCM totaled about $5 million for 50.1% of the company. The final amount was to be determined based on the ability of Faros Trading to meet its projected performance.

According to data from the Q3 earnings call of FXCM Inc (NYSE:FXCM), it was estimated at $10.6 million for a possible maximum total estimated purchase price of $15.6 million.

Speaking to Forex Magnates the Vice President Corporate Communications and Investor Relations at FXCM, Jaclyn Klein said, “Divesting Faros is consistent with our strategy to focus on our core retail franchise. Our partners in Faros Trading including the management team believe Jefferies is in an ideal position to help them realize their vision.”

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