GAIN Capital to be acquired by INTL FCStone

Maria Nikolova

GAIN’s stockholders will receive $6.00 per share, representing approximately $236 million in equity value.

Online trading major Gain Capital Holdings Inc (NYSE:GCAP) today announced it has entered into a definitive agreement to be acquired by INTL FCStone Inc. (NASDAQ:INTL).

Under the terms of the agreement, INTL FCStone will acquire GAIN in an all-cash transaction. GAIN’s stockholders will receive $6.00 per share, representing approximately $236 million in equity value.

The transaction represents a 70% premium to the closing share price of GAIN’s shares on February 26, 2020 and a 60% premium to the volume-weighted average price of GAIN’s stock in the 30 trading days ending on February 26, 2020.

The deal coms after a comprehensive strategic alternatives review process taken by GAIN’s Board of Directors. The transaction has been approved by GAIN’s Board of Directors. In addition, VantagePoint Capital Partners, Michael Spencer’s private investment group IPGL and Glenn Stevens, representing in aggregate approximately 44% of GAIN’s stockholders, have entered into agreements to vote in favor of the transaction.

The transaction is set to be completed in mid-2020, subject to regulatory approvals and other customary closing conditions.

“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.

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