FXCM has today confirmed industry speculation that it was interested in Infinium Capital Holdings by purchasing a $12 million note issued by the Chicago-based asset management and high frequency trading firm.
A significant acceleration of acquisitions and mergers has been noticeable over the last few weeks, with North American companies seeking to diversify their offerings, an example being FXCM’s recent acquisition of a controlling stake in Faros Trading LLC.
Acquisition or Capitalization?
Last month, FortuneZ detailed the potential interest demonstrated by FXCM in purchasing Infinium Capital Holdings, insofar as the method expected to take place being similar to that conducted upon FXCM’s acquisition of its controlling 50.1% stake in institutional FX market maker Lucid Markets.
Infinium Capital Holdings executives have in the past been reported to have been seeking additional liquidity due to regulatory changes taking place in high-frequency trading, and under this circumstance, FXCM has executed the deal in the form of the extension of a note to Infinium Capital Holdings of $12 million. The note matures in August 2015.
Payment and yield information of the note was undisclosed by the parties at this point. FortuneZ speculates, that an equity ownership conversion rate may also be included in the agreement.