NEW YORK (AP) -- FXCM has bid $210.4 million in stock for rival currency exchange provider Gain Capital Holdings LLC.
FXCM, based in New York, will give Gain shareholders 0.3996 shares of FXCM stock for each share of Gain common stock. This equates to an offer price of $5.35 per share of Gain common stock, a 25 percent premium to Gain's closing share price on Monday's close before news of the offer was public. FXCM said it is also prepared to offer up to $50 million in cash in lieu of FXCM shares.
Gain, based in Bedminster, N.J., said Tuesday that it will consider the proposal, as well as a range of options to build shareholder value.
FXCM reported in March that its net income fell nearly 3 percent in the most recent fiscal year to earned $9 million, or 37 cents per share. Its annual revenue rose slightly to $417.3 million from $415.6 million. The company said a combined company would create a strong growth profile business with the benefit of economies of scale.
Shares of FXCM Inc. increased 2 percent to $13.66 by midmorning Tuesday. Gain's shares soared more than 26 percent to $5.39.