IG Group Holdings plc Acquisition of DailyFX (2715L)
September 30 2016 - 1:01AM
UK Regulatory
TIDMIGG
RNS Number : 2715L
IG Group Holdings plc
30 September 2016
30 September 2016
IG GROUP HOLDINGS PLC
Acquisition of DailyFX
IG Group ("IG"), a global leader in online trading, today
announces that it has agreed, subject to final approvals, to
purchase DailyFX, a leading global news and research portal, and
its associated assets, from FXCM Inc. for a total consideration of
$40 million (currently GBP30.8 million). It is anticipated that the
transaction will complete by the end of October.
This purchase is part of IG's stated aim of becoming the default
choice for active traders globally. DailyFX, through a series of
global websites, delivers market-leading education, research,
analysis and news, focused predominantly on the FX markets. IG
believes this transaction will significantly enhance its ability to
acquire new clients and to engage with and improve the retention
rates of its current clients.
The DailyFX websites currently support eight languages, English,
French, German, Italian, Spanish, Greek, Arabic and Chinese, with
the client recruitment centred in related geographic regions. IG
will take on ownership of all of the assets associated with
delivering the full service to current and potential clients,
including journalistic and support staff, subscription lists,
source code, all relevant domain names and all intellectual
property rights. For an agreed annual fee, FXCM will continue to
benefit from advertising on the US site and will take ownership of
any US and Canadian domiciled leads that this advertising
generates.
On an annualised basis, it is expected that the addition of the
DailyFX news and education-based marketing channel will add around
GBP5 million to ongoing operating costs. It is also expected that
the purchase price for the assets will be amortised on a
straight-line basis over 10 years. It is currently anticipated that
this channel will generate a sufficient number of incremental
active clients such that it will be earnings enhancing in IG's FY18
financial year, and will deliver increasing value beyond.
Peter Hetherington CEO of IG said: "We are extremely pleased to
have had the opportunity to purchase what we consider to be the
leading global client recruitment resource in the FX environment,
an asset type where IG is very strong, but historically
underweight. This brings to IG an exceptional proven platform for
both acquiring new clients and further engaging our entire current
global client base, along with a number of very talented people.
This transaction further underpins our commitment to continuing to
provide the best client experience in our industry."
For further information, please contact:
IG Group
Kieran McKinney
Head of Investor Relations and Corporate Affairs 020 7573 0026
FTI Consulting
Neil Doyle / Ed Berry 020 3727 1141 / 1046
This announcement may contain forward-looking statements about
IG Group Holdings plc and its subsidiaries (the "Group").
Forward-looking statements involve uncertainties because they
relate to events, and depend on circumstances, that will, or may,
occur in the future and that may be beyond the Group's control. If
the assumptions on which the Group bases its forward-looking
statements change, actual results may differ from those expressed
in such statements. Forward-looking statements speak only as of the
date they are made and the Company undertakes no obligation to
update these forward-looking statements. Nothing in this statement
should be construed as a profit forecast.
About IG
IG is a global leader in online trading, providing fast and
flexible access to over 10,000 financial markets - including
shares, indices, forex, commodities and binaries.
Established in 1974 as the world's first financial spread
betting firm, IG's aim is to become the default choice for active
traders globally. It is an award-winning multi-platform trading
company, the world's No.1 provider of CFDs* and a global leader in
forex, and it now offers an execution-only stockbroking service in
the UK, Australia, Ireland, Germany, Austria and the
Netherlands.
It is a member of the FTSE 250, with offices across Europe,
Africa, Asia-Pacific, the Middle East and the US, where it offers
limited risk derivatives contracts via the Nadex brand.
*Based on revenue excluding FX, from published financial
statements, September 2015.
About DailyFX
DailyFX is one of the world's leading education, research,
analysis and news sources for the currency trading community, and
serves as a premier portal to a vibrant online forum in the forex
trading community. The site delivers up-to-date analysis of the
fundamental and technical influences driving the currency and
commodity markets. DailyFX analysts report every day on the latest
changes in the currency market, offering in-depth coverage of price
action, predictions of likely market moves, and exhaustive
interpretations of economic and political developments, as well as
reports on indices and investments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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