FXCM Completes Sale of FXCM Hong Kong to Rakuten Sec
FXCM to Pay an Additional $33 Million Owed to Leucadia
FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange (FX) trading and related services, announced that Forex Trading, LLC, a subsidiary of FXCM Newco, LLC (“FXCM”) has completed its sale of FXCM Asia Limited (“FXCM Hong Kong”) 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 total consideration of approximately $38 million.
Rakuten Sec will continue to use the FXCM trading system for FXCM Hong Kong clients under a white label agreement with FXCM and will continue to service local forex traders as FXCM Asia powered by Rakuten Sec.
Additionally, FXCM anticipates repaying $33 million outstanding under its credit agreement with Leucadia and will have repaid $115 million to date, leaving $195 million remaining.
“The company remains focused on completing our near-term strategy of eliminating the Leucadia debt through the sale of non-core assets and cash generated through operations as well as accelerating the growth of our core business through a number of FX and CFD initiatives,” said Drew Niv, CEO of FXCM. “With the close of this deal we have made another positive step towards completing our goals.”
Source: FXCM
