FXCM Inc acquisition of IBFX assets – $5.4 million

LeapRate Exclusive… LeapRate has learned that the September acquisition by FXCM Inc (NYSE:FXCM) of the US and Australia MT4 clients of IBFX was done for cash consideration of $5.4 million.

The acquisition consisted of approximately $54.4 million in client equity and 13,000 accounts. The deal came together as Japan-based Monex Group, Inc. (TYO:8698), which owns IBFX, decided to exit much of its retail forex business outside Japan, and fold the IBFX brand into TradeStation.

A few other interesting notes regarding the deal, which we’ve unveiled via a series of FXCM filings made with the US Securities and Exchange Commission (SEC):

  1. Client Retention Rate – When first announced, FXCM said it would be acquiring $63 million in IBFX client assets. However in its Q3 10-Q filing made in early November FXCM stated that the number was actually $54.4 million. We understand that about $8.6 million of client assets did indeed leave post-announcement. However, based on other acquisitions we’ve witnessed in the sector over the years, FXCM’s 86%+ ‘retention rate’ is pretty good, given that clients are always free to go elsewhere when acquired.
  2. Valuation – FXCM paid here only about half of what it paid for the FXDD US clients which it acquired back in May. In that deal – as also exclusively revealed by LeapRate – FXCM paid $4.4 million for $23.4 million in client assets – or about 19% of client assets acquired. Here, it paid just below 10% of assets acquired.

For a more complete list of M&A transactions in the Forex sector, as well as comp valuations of Forex M&A deals, see the all-new LeapRate Forex Industry Report for 2015.

Related News


FXCM Inc acquisition of IBFX assets - $5.4 million


Send this to a friend

Subscribe to LeapRate
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: