IG Group to buy global news and research portal DailyFX

IG Group has agreed to buy global news and research portal DailyFX and its associated assets from FXCM Inc. for a total consideration of $40m.

IG said the deal, which is expected to complete by the end of October, is part of its aim of becoming the default choice for active traders globally. The company said this transaction will “significantly enhance” its ability to acquire new clients and to engage with and improve the retention rates of its current clients.

Through a series of global websites, DailyFX delivers education, research, analysis and news, focused predominantly on the FX markets.

The DailyFX websites currently support 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.

IG expects that on an annualised basis, the addition of the DailyFX news and education-based marketing channel will add around £5m 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 to be earnings-enhancing in IG's FY18 financial year.

Chief executive Peter Hetherington 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."