Forex Capital Markets Inc., one of the largest FX retail brokers in the United States, has entered into a deal with IG Group for the sale of DailyFX, a market news and research portal owned by FXCM. Per the press release, the IG will be buying DailyFX for $40 million, with the deal closing by the end of October.
The sale will see IG take possession of all domains, intellectual property and the site’s 34-employee team.
“FXCM will continue to be an advertiser to U.S. and Canadian residents on the DailyFX English version of the website.”FXCM will see a $36 million cash payment at the close, with another $4 million to be disbursed as certain transition milestones are met. FXCM took out a big loan from New York-based holding firm Leucadia in the aftermath of the Swiss National Bank’s decision to abandon its euro peg on January 15, 2015. FXCM said that proceeds from the sale of DailyFX will go towards paying down the Leucadia debt:
“Following this transaction, FXCM will have made loan repayments of $157 million to Leucadia with $153 million outstanding and will have repaid more than half its debt.”Drew Niv, CEO of FXCM, said there will be no additional asset sales, "While DailyFX is a high quality asset and was not a targeted asset to sell, the opportunity came along and it was something we felt we should take advantage of,” he added.
In the announcement, FXCM states that it will continue to provide its clients with market research and trading education. The firm also mentioned the upcoming launch of FXCM Plus, a new service that will provide FXCM’s live traders with “proprietary data including signals, sentiment data (SSI), live webinars and technical alerts.”
Image credit: Twitter