British spread-better IG buys Japan’s FXOnline

Britain's biggest spread-betting firm IG Group said on Wednesday it had agreed to buy 87.5 percent of Japanese online foreign exchange trading firm FXOnline Japan KK for 112.2 mln pounds ($207.7 mln).
Part of the deal would be financed by placing almost 33 mln new ordinary shares to raise 82.2 mln pounds with the balance coming from existing cash reserves, IG said in a statement.
IG also said recent bans on short selling shares in some banks were expected to have a "negligible" impact on group revenues and that its trading and outlook had not changed since issuing a trading statement on Sept. 9.
"While it remains difficult to predict future trends in volatility or client reaction to any changes in market conditions, the directors of IG believe that the group remains well positioned for further growth and are confident of the group's prospects," the company said.
IG said the acquisition of FXOnline fitted with its strategy of extending its geographic reach, and was likely to result in "significant" cost savings and enhance its earnings per share in the current financial year.
"There is a good cultural fit between the two businesses and the potential for immediate synergies," IG Chief Executive Tim Howkins said. "The acquisition of FXOnline and our entry into the Japanese FX market represent an important milestone in our strategic plans."
IG said Lexicon Partners had advised on the acquisition while UBS was acting for it in relation to the share placing.