FXCM has agreed to sell DailyFX, its news and research website to IG Group for $40 million.
Subject to IG final approval and customary closing conditions, the transaction is expected to close by the end of October.
Upon completion, IG will receive the entire DailyFX business including all international and domestic web domains, source code and content.
The 34 employees currently working on DailyFX domains will also transfer to IG in the transaction. FXCM will continue to be an advertiser to US and Canadian residents on the DailyFX English version of the website.
Once the transaction is completed, a transition period for migration purposes will begin immediately. Cash of $36 million will be paid to FXCM on closing, with the additional $4 million to be paid on completion of certain migration requirements.
Proceeds from the sale will be used to repay debt owed to Leucadia. Following this transaction, FXCM will have made loan repayments of $157 million to Leucadia with $153 million outstanding and will have repaid more than half its debt.
“While DailyFX is a high quality asset and was not a targeted asset to sell, the opportunity came along and it was something we felt we should take advantage of,” says Drew Niv CEO of FXCM. “At this time, we do not plan on selling any other retail FX assets and believe the remaining assets held for sale satisfy the remaining debt outstanding to Leucadia.”
FXCM says that it will continue to offer FX trading education and provide news and analytics through its FXCM web domains, as well as on the FXCM Trading Station platform and charting package.
In the coming weeks, FXCM will be launching FXCM Plus, a password protected webpage for all FXCM live clients which will include FXCM’s proprietary data including signals, sentiment data (SSI), live webinars and technical alerts.
FXCM clients will also still have access to IG’s DailyFX PLUS.