GAIN Capital Holdings, Inc., (GCAP), a provider of online trading services, Thursday said it signed a definitive agreement to acquire Global Futures & Forex, LTD or GFT, a provider of retail forex and derivatives trading, for $107.8 million in cash and stock. The company also reported preliminary earnings in the first quarter, compared with a loss last year.
For acquiring GFT, GAIN Capital will pay $40 million in cash, a five-year $40 million seller note, and issue approximately 4.9 million shares.
The transaction is expected to add to GAIN Capital's earnings in the first full quarter after closing, and first year operating synergies are estimated at $35-$45 million. The combined company will have pro forma client assets of approximately $650 million. The transaction is expected to close in the third quarter of this fiscal.
For the first quarter, GAIN Capital issued preliminary results by reporting net income $4.3 million or $0.11 per share, a reverse from net loss of $1.3 million or $0.04 per share last year. Net revenue for the quarter was recorded at $49.8 million, a 50 percent increase from last year.
EBITDA for the period was $7.5 million, up from $1.3 million during the comparable period last year.
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