30 September 2016
IG GROUP HOLDINGS PLC
Acquisition of DailyFX
IG Group ("IG"), a global leader in online trading, today announces that it has agreed, subject to final approvals, to purchase DailyFX, a leading global news and research portal, and its associated assets, from FXCM Inc. for a total consideration of $40 million (currently £30.8 million). It is anticipated that the transaction will complete by the end of October.
This purchase is part of IG's stated aim of becoming the default choice for active traders globally. DailyFX, through a series of global websites, delivers market-leading education, research, analysis and news, focused predominantly on the FX markets. IG believes this transaction will significantly enhance its ability to acquire new clients and to engage with and improve the retention rates of its current clients.
The DailyFX websites currently support eight languages, English, French, German, Italian, Spanish, Greek, Arabic and Chinese, with the client recruitment centred in related geographic regions. IG will take on ownership of all of the assets associated with delivering the full service to current and potential clients, including journalistic and support staff, subscription lists, source code, all relevant domain names and all intellectual property rights. For an agreed annual fee, FXCM will continue to benefit from advertising on the US site and will take ownership of any US and Canadian domiciled leads that this advertising generates.
On an annualised basis, it is expected that the addition of the DailyFX news and education-based marketing channel will add around £5 million to ongoing operating costs. It is also expected that the purchase price for the assets will be amortised on a straight-line basis over 10 years. It is currently anticipated that this channel will generate a sufficient number of incremental active clients such that it will be earnings enhancing in IG's FY18 financial year, and will deliver increasing value beyond.
Peter Hetherington CEO of IG said: "We are extremely pleased to have had the opportunity to purchase what we consider to be the leading global client recruitment resource in the FX environment, an asset type where IG is very strong, but historically underweight. This brings to IG an exceptional proven platform for both acquiring new clients and further engaging our entire current global client base, along with a number of very talented people. This transaction further underpins our commitment to continuing to provide the best client experience in our industry."
For further information, please contact:
IG Group
Kieran McKinney
Head of Investor Relations and Corporate Affairs 020 7573 0026
FTI Consulting
Neil Doyle / Ed Berry 020 3727 1141 / 1046
This announcement may contain forward-looking statements about IG Group Holdings plc and its subsidiaries (the "Group"). Forward-looking statements involve uncertainties because they relate to events, and depend on circumstances, that will, or may, occur in the future and that may be beyond the Group's control. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.
About IG
IG is a global leader in online trading, providing fast and flexible access to over 10,000 financial markets - including shares, indices, forex, commodities and binaries.
Established in 1974 as the world's first financial spread betting firm, IG's aim is to become the default choice for active traders globally. It is an award-winning multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex, and it now offers an execution-only stockbroking service in the UK, Australia, Ireland, Germany, Austria and the Netherlands.
It is a member of the FTSE 250, with offices across Europe, Africa, Asia-Pacific, the Middle East and the US, where it offers limited risk derivatives contracts via the Nadex brand.
*Based on revenue excluding FX, from published financial statements, September 2015.
About DailyFX
DailyFX is one of the world's leading education, research, analysis and news sources for the currency trading community, and serves as a premier portal to a vibrant online forum in the forex trading community. The site delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. DailyFX analysts report every day on the latest changes in the currency market, offering in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of economic and political developments, as well as reports on indices and investments.
