LONDON, Feb. 6 /CNW/ - City Index Group, a leading provider of retail
derivative trading services including CFDs, FX and spread betting, is pleased
to announce the acquisition of FX Solutions LLC (http://www.fxsolutions.com)
in an all equity transaction.
FX Solutions, based in Saddle River, New Jersey, provides a premier
retail foreign exchange ('FX') electronic trading platform for all major
currency pairs. FX Solutions was founded in 2001 by Thomas Plaut and Robert
Cortright, two industry leading executives with over 40 years combined
experience in foreign exchange trading. Messrs Plaut and Cortright will
continue in central roles in the enlarged group.
FX Solutions has been recognized for 3 consecutive years by Inc. magazine
as a part of the annual Inc. 500 "America's Fastest Growing Private Companies"
list. Only 11 of 500 companies achieved that status, and in 2007, FX Solutions
was the only retail FX broker to make the list.
Between December 2005 and December 2007 FX Sol's EBITDA (earnings before
interest, taxation, depreciation and amortisation) grew at cumulative annual
rate of over 60 per cent. In early 2007 Francisco Partners, the US private
equity house, invested over US$100 million in FX Solutions.
The combined Group will employ over 400 staff across 6 offices in the UK,
United States, China, Singapore and Australia and has partnership
relationships throughout Europe, North America, Australia and the Middle East,
transacting approximately 1.6 million trades per month. The Group is regulated
in Europe, the United States, Singapore and Australia.
Mr Clive Cooke, CEO City Index, commented on the transaction: "The FX
Solutions team have built a highly successful business with clients in over 50
countries and we are delighted to be able to bring our two companies together.
This transaction will enhance and strengthen our current product offerings to
our retail clients and institutional business partners and accelerate our
expansion into new geographical markets."
Thomas Plaut Co-founder and Co-CEO of FX Solutions, commented: "We are
very pleased to be joining the City Index Group, an ideal partner to take our
business to the next stage. City Index's diverse and worldwide operations will
open new opportunities for our business and we know the merger with City Index
is going to be a positive for all involved - especially our customers."
"We are delighted to be participating in this combination, which creates
a new, multi-product leader with best in class technology, serving a rapidly
growing, global market," said David Golob, Partner with Francisco Partners.
About City Index Group
City Index is a leading provider of CFD, foreign exchange, options and,
in the UK, spread betting services. The Group trades primarily under the City
Index, Finspreads and IFX brands and also provides a fully outsourced white
label solution to numerous partners.
In September 2006, City Index acquired IFX Group plc ('IFX'), the
London-based international business which provides institutional and retail
clients with a range of innovative leveraged financial products, principally
in the foreign exchange and global equity markets. The offer valued IFX at
approximately GBP57.9 million.
City Index was established in 1983 and its ultimate parent company is
IPGL, a private holding company. IPGL's other interests include an indirect
shareholding of approximately 20 per cent. in ICAP plc, the FTSE 100 listed
interdealer broker with a market capitalisation of approximately GBP4.3
billion, of which Michael Spencer is a director and Chief Executive Officer.
About FX Solutions LLC
FX Solutions is a leading US-based online foreign exchange broker serving
both retail and institutional customers. The Company provides IB's and White
Label Partners FX trading and risk management in over 100 countries through
its Global Trading Systems (GTS) platform. Regulated by the CFTC and NFA, FX
Solutions' custom-engineered suite of applications includes one-click trading,
automated execution of orders, a proprietary price feed and competitive
fixed-spread pricing - resulting in consistently low executable spreads. FX
Solutions has websites and complete customer support in four languages.
FX Solutions' Global Trading System platform, known as GTS, was built to
be scalable and flexible, serving the needs of retail clients and
institutional partners. The GTS platform provides for over 99% automated
execution of all orders as well as a suite of professional trading features
and tools. Recently, FX Solutions announced the launch of two new products:
GTS Web, a web-based platform and FX AccuCharts 7.0, a charting package that
has over 150 indicators and allows for trading from the charts. Later this
year, the Company plans to launch GTS Mobile, a mobile trading platform.
About Francisco Partners ('FP')
Francisco Partners is a leading global private equity firm focused
exclusively on investments in technology and technology-enabled businesses.
With approximately US$5.0 billion of committed capital, Francisco Partners is
one of the world's largest technology-focused private equity funds. The firm
was founded to pursue structured investments in technology companies
undergoing strategic, technological and operational inflexion points.
Francisco Partners targets majority and minority investments in private
companies, public companies and divisions of public companies, with
transaction values ranging from US$30 million to US$2.0 billion.
For further information:
For further information: City Index, Alison Cashmore, Corporate
Communications, +44-207-107-7275, +44-7740-068-580,
Alison.Cashmore@cityindex.co.uk.; U.S. Contact for FX Solutions, Josh Inglis,
Strategics, (312) 346-2007, (312) 504-7677, email@example.com