Gain’s acquisition of dbFX explained by professional Forex trading experts the “Gain’s acquisition of dbFX” FX trading team.
Gain’s acquisition of dbFX
Gain paid just $2.5 million in upfront cash to Deutsche Bank for the assets acquired from dbFX – those assets being customer account balances, effective customer agreements, and a marketing list.
The total transaction was valued at about $10 million – based on recent valuations of other Forex M&A transactions (see our Forex Industry Report for more up-to-date details on public and M&A valuations and transactions in the Forex sector), and our estimate for dbFX of about $55 million in client assets and $12 billion in monthly volume at the time of acquisition, Gain paid slightly below recent comparable valuations.
The remainder of the payments to Deutsche Bank (other than the $2.5 million upfront cash) are contingent future payments, which depend on the volume generated from the acquired dbFX customers over the next two years – Gain currently estimates those future payments at just over $7 million.
Interestingly, in its own internal allocation of the purchase cost, Gain felt that the marketing list it acquired (at $3.4 million) was worth almost as much as the customer list ($4.8 million).
Gain’s acquisition of dbFX Conclusion
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