FXCM to Acquire Lucid Markets
Conference Call to be Held to Discuss Acquisition
NEW YORK--(BUSINESS WIRE)--Jun. 14, 2012--
FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange,
or FX, trading and related services worldwide, today announced that it
has entered into a definitive agreement to acquire a 50% controlling
interest in Lucid Markets Trading Ltd. and Lucid Markets LLP (“Lucid
Markets”) for approximately $176 million, net of Lucid cash. The
transaction is expected to close in the coming weeks and is subject to
customary closing conditions.
Lucid Markets is a leading non-bank electronic market making and trading
firm in the institutional foreign exchange market. In the twelve months
ending December 31, 2011 under UK GAAP, Lucid had revenues of $148.9
million and earnings before interest, taxes, depreciation and
amortization (EBITDA) of $113.4 million. Lucid traded $13.4 trillion of
foreign exchange in 2011. The acquisition is intended to bolster FXCM’s
institutional business and Lucid will not be a liquidity provider to
FXCM’s retail agency FX offering.
“FXCM has been transforming its institutional foreign exchange business
in the past year,” said Drew Niv, Chief Executive Officer of FXCM.
“Since the fourth quarter of last year we have been migrating customers
to our own in-house institutional platform which we believe has made us
more competitive in the institutional space and resulted in some
significant increases in our institutional volume.”
“The acquisition of Lucid – a leader in market making and trading in the
institutional FX market - is a natural extension of the evolution of our
institutional business,” Niv continued. “They have demonstrated the
ability to grow and deliver solid results across a range of market
conditions. This transaction also adds the expertise and talents of one
of the best firms in the FX world. We are most excited about the
potential a Lucid/FXCM combination gives in serving our institutional
Consideration payable for the acquisition consists of 6 month notes of
$71.4 million plus Lucid cash acquired, bearing interest at 3.5% per
annum, and 9.0 million FXCM Class A common shares, of which
approximately 2 million shares will be delivered at closing and the
remainder subject to certain restrictions. Under the terms of agreement,
FXCM will receive an option to purchase an additional profit interest in
Lucid’s operations in the future and if such option is not exercised
within four years, Lucid shareholders will have a one-time option to
purchase FXCM’s interest.
The Company will host a conference call today to discuss the acquisition
at 8:15 a.m. (EST). This conference call will be available to domestic
participants by dialing 866.202.3048 and 617.213.8843 for international
participants. The conference ID number is 48924914.
A live, audio webcast and replay of this conference call will also be
available at http://ir.fxcm.com/.
Disclosure Regarding Forward-Looking Statements
In addition to historical information, this release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, which reflect FXCM Inc.’s current views with respect to, among
other things, its operations and financial performance for the future.
You can identify these forward-looking statements by the use of words
such as “outlook,” “believes,”“expects,” “potential,” “continues,”
“may,” “will,” “should,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates” or the negative version
of these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties. Accordingly,
there are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. FXCM Inc. believes these factors include but are not limited
to evolving legal and regulatory requirements of the FX industry, the
limited operating history of the FX industry, risks related to the
protection of its proprietary technology, risks related to its
dependence on FX market makers, market conditions and those other risks
described under “Risk Factors” in FXCM Inc.’s Annual Report on Form 10-K
and other SEC filings, which are accessible on the SEC website at
These factors should not be construed as exhaustive and should be read
in conjunction with the other cautionary statements that are included in
this presentation and in our SEC filings. FXCM Inc. undertakes no
obligation to publicly update or review any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as required by law.
About FXCM Inc.
Inc. (NYSE: FXCM) is a global online provider of foreign exchange,
or FX, trading and related services to retail and institutional
At the heart of FXCM's client offering is No Dealing Desk FX trading.
Clients benefit from FXCM's large network of forex liquidity providers
enabling FXCM to offer competitive spreads on major currency pairs.
Clients have the advantage of mobile trading, one-click order execution
and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital
Markets Limited, offers Contract for Difference (“CFD”) products with no
re-quote trading and allows clients to trade oil, gold, silver and stock
indices along with FX on one platform. In addition, FXCM offers
educational courses on FX trading and provides free news and market
research through DailyFX.com.
Trading foreign exchange and CFDs on margin carries a high level of
risk, and may not be suitable for all. Read
Source: FXCM Inc.
Jaclyn Sales, 646-432-2463
Thomas Porac, 646-432-2986
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