GAIN Capital acquisition of Galvan Research – $16.6 million

LeapRate Exclusive… LeapRate has learned that the acquisition by Gain Capital Holdings Inc (NYSE:GCAP) of UK-based CFD and FX advisory firm Galvan Research was done for cash consideration of $16.6 million.

The preliminary purchase price paid to Galvan’s owners when the deal closed in July was $9.7 million in cash. In addition, a contingent payment of $6.9 million is payable over a three year period subject to the achievement of specific financial and customer account targets.

Galvan had about $2.2 million in cash which it brought to Gain. Gain attributed $9.5 million of the purchase price to ‘Goodwill’.

Galvan Research provides individual investors with professional advice and trading recommendations across a wide range of markets, including CFDs, FX, individual equities, equity indices and other market sectors. Galvan generates revenue by earning a commission on each transaction made by its clients. Gain is using the people and assets it acquired from Galvan as a basis on which to build a comprehensive advisory service for its clients.

Despite the lofty purchase price, Gain Capital says that it expects the transaction to be immediately accretive to 2014 results. In Q3-2014 alone, Galvan contributed $2.3 million to revenue at Gain.

$16.6 million seems like a lot to pay for an advisory business. However the Galvan deal seems to be part of a wider Gain Capital strategy to stake out a major claim in the lucrative UK online trading market, where we understand Galvan did most of its business. Gain Capital also bought UK-based City Index for $118 million in October.

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


GAIN Capital acquisition of Galvan Research - $16.6 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: