Swissquote’s MIG Bank acquisition – more details on payment

Hisham and Wissam Mansour will own 5% of Swissquote going forward.

LeapRate Exclusive.… As we promised, some more details on the Swissquote acquisition of rival Swiss forex broker MIG Bank.

Apparently the deal was done for a combination of cash and stock, fairly standard in this type and size of acquisition. Swissquote has paid 750,000 shares out of Treasury to shareholders of MIG Bank — primarily brothers Hisham and Wissam Mansour, with the remainder of the purchase price paid in cash.

With Swissquote having about 14 million shares shares outstanding, that means that the Mansour brothers will have a combined 5% interest in Swissquote, which at current market prices (SWX:SQN) are worth about CHF 25.8 million (or $28 million). That makes the Mansours the third largest shareholders in Swissquote, behind co-founders Marc Burki (CEO) and Paolo Buzzi (CTO), each holding about 14%.

As to the cash portion? Both parties have agreed to keep that under wraps for now. However based on information we discovered — such as MIG Bank’s $60 billion of monthly volumes and annualized revenues of about $66 million, we guesstimated that the total purchase price was in the $150 million region. That would mean that the cash portion paid to MIG’s shareholders was in the $100-$125 million range. Again, purely speculation at this point, but we believe an educated guess.

The markets have cheered the acquisition, with Swissquote shares trading up 13% Wednesday and a further 3% of Thursday after the deal was announced.

To see the complete Swissquote-MIG Bank acquisition press release click here (pdf).

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.



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