Previously I reported that FXCM acquired ODL for only 3.5% of its shares, deal that was valued back then at $23.6 million. I hence deduced that FXCM’s value was around $676 million pre-money.
It seems that FXCM have updated these figures in their final pre-IPO filing.
FXCM now state that ODL was acquired for $2.2 million and cash and %5.25 of FXCM valuing the deal at $54.9 million. This means that at the time of ODL’s acquisition FXCM valued itself at $1.003 billion. FXCM was valued $1.05 billion at the IPO after raising $210 million – that is $840 million before the money.
Pretty neat deal for FXCM which received about $190 million in assets (including $163 million in client funds) even though it had to write off about £12.6 million in unrecoverable debt and inject $9.4 million to strengthen ODL’s balance sheet.
We may as well post all the financials for ODL. There is a reason that property went so cheap. 2009 revenue of $64m, operating expenses of $88m for a pretax loss of $23m.
And trends were bad. In the first 9 mos of 2010, revenues were only $38m, expenses were $56m for a pretax loss of $19m