GAIN Capital Acquisition of City Index Totals $1.1 Billion Client Funds

According to a company announcement, GAIN Capital Holdings (NYSE:GAIN) has . After the conclusion of the deal, the company stated that the combined size of client deposits now totalled more than $1.1 billion, which after the recent outflows of funds deposited with FXCM (NYSE:FXCM), made it bigger than its other U.S. listed counterpart.

Annual trading volumes are expected to exceed $3 trillion. GAIN Capital Holdings’ (NYSE:GAIN) CEO Glenn Stevens commented in the announcement, “The closing of this transaction marks another major milestone in the growth of GAIN Capital and we are excited by the complementary strengths that have been brought together through this combination.”

The total price of the acquisition is estimated at $148 million

“The scale, scope of products and geographies served and market leading technology provided by the combined company provides us with an excellent platform for continued growth and success,” Mr. Stevens concluded.

The total price of the acquisition is estimated at $148 million, with $36 million paid in cash (reflecting about US$21 million of excess regulatory capital at City Index), 5,319,149 shares of GAIN Capital Holdings’ (NYSE:GAIN) common stock and $60 million in convertible loan notes issued by the owner of the Forex.com brand.

The net purchase price paid was approximately US$77 million, reflecting US$71 million of cash on City Index’s balance sheet as of the closing date.

The latest batch of CFTC data has revealed that  in the aftermath of the Swiss National Bank’s decision to drop the CHF floor against the euro.

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