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 total purchase price was $100 million, as previously .
The completion of this transaction is an important step in GAIN Capital’s strategic portfolio repositioning as the brokerage work to streamline the business model and create opportunities for long-term growth.
GAIN Capital launched GTX in 2010 as a venue for trading in FX and precious metals by institutional investors. The acquisition helps complement Deutsche Börse Group’s offering which covers the entire value chain in the financial services sector.
The move comes about a year after Deutsche Borse’s 360T launched an FX ECN of its own. Major exchanges around the globe have been venturing deeper into foreign exchange for years now after BATS acquired Hotspot in 2015 and Euronext last May. 360T itself got in 2015.
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.”
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