Major US forex company that operates FOREX.com brand, Gain Capital, yesterday (4/1) announced their acquisition of City Index, one of leading forex and CFD trading and spread betting in the UK.

Major US forex company that operates FOREX.com brand, Gain Capital, yesterday (4/1) announced their acquisition of City Index, one of leading forex and CFD trading and spread betting in the UK.

Gain Capital Acquired City Index

According to details disclosed in a press release in Marketwatch, City Index shares were sold to Gain Capital for an aggregate purchase price of approximately 148 million USD that consists of approximately 36 million USD in cash, 5,319,149 shares of Company common stock and 60 million USD in convertible loan notes issued by the Company. Net purchase price paid was approximately 77 million USD, reflecting US$71 million of cash on City Index's balance sheet as of the closing date.

Gain Capital is US leading forex brokerage company that previously mentioned in an industry report by CITI as having 5% market share of global forex market. The acquisition of City Index adds its repertoire by one more brand aside of the already huge FOREX.com. The NYSE-listed company will have more than 1.1 billion USD customer assets with annual trading volumes bigger than 3 trillion USD. Both FOREX.com and City Index are licensed by UK Financial Conduct Authority (FCA), with FOREX.com also holds license to operate in the US and Australia, among others. FOREX.com is also known as the biggest forex broker in the US to date.