London Capital gambles on Gibraltar deal
Article Date: May 27 2008Financial services group London Capital plc has strengthened its spread betting operations with the acquisition of a company in Gibraltar. The group, which provides a range of online trading services, has added FuturesBetting.com to its portfolio.
The deal was funded by London Capital, which paid £200,000 on completion. A payment capped at the same sum has been deferred depending on the acquired business' performance in the next three years.
The acquirer intends to retain the FuturesBetting.com brand, which will trade as a subsidiary of the group, and aims to strengthen its business by targeting more sophisticated and experienced investors.
London Capital chief executive Frank Chapman says the board has always admired FuturesBetting.com’s spread betting operations.
'FuturesBetting.com’s professional investor client base will complement Capital Spreads, our spread betting division,' he adds. 'There is no doubt that the business will fit well with our expansion plans as we grow the enlarged group organically and via white label partnerships.'
London Capital’s spread betting products are designed for retail clients with its other divisions including Capital Forex, an online foreign exchange trading service, and Capital Derivatives, an institutional derivatives and equities broking business.
FuturesBetting.com has been supporting experienced traders with spread betting services on major indices, currencies and commodities since 2005.
