GAIN Capital Holdings, Inc. (NYSE: GCAP) has completed the sale of its institutional business unit, GTX ECN, to Deutsche Börse Group via its FX unit, 360T. The largest retail broker in the US received proceeds of $85 million net of taxes and transaction-related expenses and fees.
The deal creates one of the largest OTC FX marketplaces for institutional traders and further enhances 360T’s presence in the Americas. The combined offering will serve over 2000 global clients that operate out of more than 75 countries around the world.
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The completion of this transaction is an important step in GAIN Capital’s portfolio repositioning as the brokerage work to streamline the business model and create opportunities for long-term growth.
GAIN Capital launched GTX in 2010 an institutional venue for trading precious metals and foreign exchange. The FX ECN is accessible by hedge funds, CTAs, HFT traders, broker/dealers and high net worth individuals with direct access to trade execution capabilities and diverse liquidity sources.
Commenting on the deal completion, Glenn Stevens, CEO of GAIN Capital said: “The sale of GTX marks a pivotal moment for GAIN by allowing us to focus additional attention and resources on the core retail business and setting us on a trajectory for enhanced growth and profitability. In addition to investing in organic growth, the proceeds provide us with increased financial flexibility to pursue M&A opportunities that will accelerate our growth strategy, return capital to shareholders via our stock repurchase program, and reduce our debt. We thank Deutche Borse and its 360T Unit for their partnership during and after this transaction closes.”