Stock Update (NYSE:FXCM): FXCM Inc Signs Agreement to Sell News and Research Website DailyFX for $40 Million
FXCM Inc (NASDAQ:FXCM) announced that it has agreed to sell DailyFX, its news and research website to IG Group (“IG”), a global leader in online trading, for a price of $40 million. Subject to IG final approval and customary closing conditions, the transaction is expected to close by the end of October.
Upon completion, IG will receive the entire DailyFX business including all international and domestic web domains, source code and content. 34 employees currently working on DailyFX domains will also transfer to IG in the transaction. FXCM will continue to be an advertiser to U.S. and Canadian residents on the DailyFX English version of the website.
Once the transaction is completed, a transition period for migration purposes will begin immediately. Cash of $36 million will be paid to FXCM on closing, with the additional $4 million to be paid on completion of certain migration requirements. Proceeds from the sale will be used to repay debt owed to Leucadia. 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.
“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,” said Drew Niv CEO of FXCM. “At this time, we do not plan on selling any other retail FX assets and believe the remaining assets held for sale satisfy the remaining debt outstanding to Leucadia.” (Original Source)
Shares of FXCM closed yesterday at $8.61, down $0.07 or -0.81%. FXCM has a 1-year high of $9 and a 1-year low of $8.56. The stock’s 50-day moving average is $9.32 and its 200-day moving average is $9.94.
FXCM, Inc. engages in the provision of foreign exchange trading and related services to active retail accounts globally. It focuses on trading activities with counterparties which include brokers and dealers, futures commission merchants, banks, and other financial institutions.