FXCM has announced the sale of its Japanese unit FXCM Japan to Rakuten Securities for $62 million. This is part of the US broker’s consolidation and business change.
The firm was hit hard by the SNBomb: the Swiss National Bank’s decision to remove the 1.20 floor under EUR/CHF, back on January 15th. The decision had a material impact on many brokers. Here is more information from the official press release:
NEW YORK, March 25, 2015 (GLOBE NEWSWIRE) — FXCM Inc. (NYSE:FXCM) a leading online provider of foreign exchange (FX) trading and related services, today announced that FXCM Holdings, LLC and FXCM Newco, LLC (“FXCM”) have signed a definitive agreement to sell FXCM Japan Securities Co., Ltd (“FXCM Japan”) to Rakuten Securities, Inc. (“Rakuten Sec”), a top 5 FX broker in Japan, and a subsidiary of Rakuten, Inc. (“Rakuten”) (TOKYO:4755), one of the world’s largest Internet services companies, for a purchase price of approximately $62 million.
Rakuten Sec will continue to use the FXCM trading system for legacy FXCM Japan clients and will be notifying clients once the deal is finalized.
The transaction is expected to close on April 1, 2015, subject to customary closing conditions and the final purchase price will be based on FXCM Japan’s March 31, 2015 balance sheet.
“We are pleased to announce this transaction with Rakuten Sec, as they are an innovative and strong firm,” said Drew Niv, CEO of FXCM. “We are confident that they will provide the same level of excellent service and trading environment that our account holders have experienced at FXCM.”
“We are delighted to invite FXCM Japan to Rakuten group,” said Yuji Kusunoki, President of Rakuten Sec. “We believe that our combined capability will enhance our strategy to be the top FX service provider in Japan.”
Pinnacle Inc. served FXCM as financial advisor on the deal.
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