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Gain Capital expands UK presence by acquiring City Index for $118 million
US-based Gain Capital, which owns and operates the retail Forex.com and institutional GTX brands, has announced the acquisition of London-based financial spreadbetting firm City Index. Gain Capital is paying a total of $118 million, although from a cash perspective it will come out ahead by about $16 million. City Index has about $36 million of cash on its books, while the purchase price will consist of $20 million in cash, $60 million of convertible notes and the issuance of approximately 5.3 million Gain shares (worth about $38 million). The total purchase price of $118 million represents a $28 million premium ... (full story)