GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or the "Company") today announced it has entered into a definitive agreement to be acquired by INTL FCStone Inc. (NASDAQ: INTL) ("INTL FCStone"). Under the terms of the agreement, INTL FCStone will acquire the Company in an all-cash transaction. The Company's stockholders will receive $6.00 per share, representing approximately $236 million in equity value. "GAIN's business fits naturally within INTL FCStone's diversified and scaled franchise, and our shareholders will benefit from this combination by receiving a substantial premium in an all-cash transaction. GAIN was founded over 20 years ago with the intention of providing traders with low-cost access to foreign exchange markets. By joining INTL, we see an incredible opportunity to leverage their capabilities and ecosystem of products, and to deliver an even more comprehensive offering to our customers. Bringing together GAIN's expertise in serving the retail customer and INTL's unparalleled access to the financial markets creates an exciting value proposition and enables the combined group to serve a wider range of customers," commented Glenn Stevens, Chief Executive Officer of GAIN Capital Holdings, Inc. https://www.prnewswire.com/news-rel...inc-for-6-00-per-share-in-cash-301012317.html
Great for shareholders, but what about for traders? They've had data issues for many months now with no fix in sight. One can hope... https://www.elitetrader.com/et/threads/gain-capital-or-futuresonline-com-was-oec-data-delays.340132
I moved away from GainCap because of wildly floating spreads. I'm hoping to see this deal make a better platform for retail forex traders but only time will tell us this. I'll be keeping an eye on this for sure.
Why would FC Stone do such an unproductive acquisition? GAIN is active in the retail world, mostly. Lot of Compliance headache, lot of admin costs, no real value in the internalization of the flow, and daily average volumes falling due to lack in vola in currency markets (which will not change for a long while with the actual coronavirus fear mongering).....