ForexNewsNow-Online trading provider GAIN Capital announced that it had signed a formal takeover deal with rivaling business GFT Markets. This news comes after not so long ago FXCM made a hostile takeover offer to GAIN Capital.
GAIN Capital Takes Over GFT
Leading online trading provider GAIN Capital has officially taken over one of its main rivals GFT. GAIN is expected to pay around $107 million for the acquisition. From this sum, $40 million will be paid in cash while the remaining amount will be provided in the form of a five-year $40 seller note.
The company announced that this takeover deal would most likely be closed sometimes in the third quarter of 2013. After the merger of the two companies, the online trading brands owned by the ventures will continue to function independently. This is because the brands of both companies have very large following and very strong identities at this moment.
Until the merger will formally take place, current GFT Markets CEO Gary Tilkin will continue to lead the company. After the merger, Tilkin will be given 12% equity in the new firm and will become an official member of the combined venture’s Board of Directors.
CEO Tilkin also revealed in an interview that in the past the company has also been approached by multiple other ventures and brokers offering a takeover deal. However, all these deals were rejected by the venture. One of the main reasons why GFT accepted the takeover deal submitted by GAIN Capital was the previous relation between the two companies.
Last year, GAIN capital already took over GFT’s operations in the United States after GFT decided to leave the US online trading market.
GAIN Capital Rejects FXCM Offer
In a rather ironic circumstance, with this takeover deal GAIN also officially rejected the takeover deal submitted by FCXM. Not so long ago, FXCM made a takeover offer to the management of GAIN Capital. Industry experts believed that the offer was quite hostile due to the fact that it heavily undervalued the venture.
Now it appears that GAIN Capital’s informal response to this offer was to take over another forex company itself.
About GAIN Capital
GAIN Capital is one of the largest forex brokers operating on the market at this moment. The company’s main retail forex brand is the popular Forex.com website that offers top-ranked forex trading services to clients in multiple countries around the globe. GAIN also offers white label services to other forex brokers that wish to become established on the market.
The company is also known for its proprietary online trading platform FOREXTrader. The platform was designed to operate on multiple devices such as normal PCs, mobile devices and web-browsers as well. It includes a large number of features designed for professional traders.
About GFT Markets
GFT is a smaller but popular forex trading provider. The company was founded in 1997, meaning that it’s one of the oldest forex trading businesses on the planet. The company is mostly known of its proprietary online trading platform DealBook. Like the platform developed by GAIN Capital, the DealBook platform is also one of the highest-ranked online trading platforms in the business.