StoneX finalizes acquisition of GAIN Capital

Maria Nikolova

StoneX expects the integration of GAIN’s businesses to drive transaction volumes and create new cross-selling opportunities.

StoneX Group Inc. (NASDAQ:SNEX), formerly known as INTL FCStone, today announced the completion of its previously announced acquisition of online provider of retail Forex trading and related services GAIN Capital Holdings, Inc. (NYSE:GCAP).

Glenn Stevens, CEO of GAIN, commented on the transaction, “As a result of this combination, GAIN’s customers will benefit from a richer product offering, as well as the expanded resources and greater scale of the combined firm. StoneX, in turn, will add a new digital platform to its global financial network, significantly expanding its offering to retail clients, as well as a complementary futures business. We look forward to a bright future as part of the StoneX Group.”

Sean O’Connor, CEO of StoneX, added, “This is the beginning of an exciting new era for our company as we add two of the largest and best known retail financial-services trading brands in the world to our global financial services network, in the process more than doubling the number of active retail accounts we serve to 295,000 worldwide. We expect the integration of GAIN’s businesses to drive transaction volumes and create new cross-selling opportunities across all of our platforms – ultimately driving our financial performance in the process.”

The deal was initially announced in February this year. Under the terms of the agreement, StoneX 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.

Shareholders of Gain Capital have backed the proposed acquisition. At a special meeting of stockholders held on June 5, 2020, holders of approximately 71.2% of GAIN’s shares issued and outstanding as of the close of business on the record date voted in favor of the proposal to adopt the merger agreement, representing approximately 85.7% of votes cast (excluding abstentions).

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