Breaking: INTL FCStone Acquires GAIN Capital Holdings for $236mln

INTL FCStone Inc. acquires GAIN Capital Holdings, Inc. for $6.00 per share in an all-cash transaction. This represents approximately $236 million in equity value. 

February 27, 2020 | AtoZ Markets – There’s about to be another big shakeup to the brokerage industry in the United States.  INTL FCStone Inc. today announced that it has entered into a definitive agreement to acquire Online trading major Gain Capital Holdings Inc.

INTL FCStone to buy GAIN Capital in an all-cash transaction

Under the terms of the agreement, INTL FCStone will acquire GAIN in an all-cash deal. GAIN’s stockholders will receive $6.00 per share, representing approximately $236 million in equity value.

The transaction represents a 70% premium to the closing share price of GAIN’s shares on February 26, 2020. The deal also represents a 60% premium to the volume-weighted average price of GAIN’s stock in the 30 trading days ending on February 26, 2020.

The deal comes after a comprehensive strategic alternatives review process taken by GAIN’s Board of Directors. The transaction has been approved by GAIN’s Board of Directors. What is more, VantagePoint Capital Partners, Michael Spencer’s private investment group IPGL and Glenn Stevens represent in aggregate approximately 44% of GAIN’s stockholders. All three have entered into agreements to vote in favor of the transaction.

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The transaction is expected to close in mid-2020

The transaction is set to be completed in mid-2020, subject to regulatory approvals and other customary closing conditions. Following GAIN Capital Acquisition, the company's clients will have access to a larger product offering and resources. Meanwhile, INTL FCStone will add a new digital platform to its global financial network. This will significantly expand its offering to retail clients, among other benefits.

Commenting on the acquisition, Glenn Stevens, CEO of GAIN said:

“GAIN’s business fits naturally within INTL FCStone’s diversified and scaled franchise, and our shareholders will benefit from this combination by receiving a substantial premium in an all-cash transaction.”

“GAIN was founded over 20 years ago with the intention of providing traders with low-cost access to foreign exchange markets. By joining INTL, we see an incredible opportunity to leverage their capabilities and ecosystem of products, and to deliver an even more comprehensive offering to our customers.

“Bringing together GAIN’s expertise in serving the retail customer and INTL’s unparalleled access to the financial markets creates an exciting value proposition and enables the combined group to serve a wider range of customers,” added Glenn.

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