Swissquote Acquires MIG Bank


It's all go on the mergers, acquisitions and transfers front this week! Swissquote Bank announced in a press release earlier today that:

Swissquote Bank is acquiring a 100 percent holding in MIG Bank effective 25 September 2013. The acquisition of this major forex broker secures Swissquote Bank a place among the world’s largest forex service providers. The goal is to merge MIG Bank with Swissquote Bank.

Founded in 2003 as MIG Investments, MIG Bank employs an overall workforce of 120 at its headquarters in Lausanne and offices in Zurich, London and Hong Kong. In 2009, MIG Bank became the first forex broker to obtain a Swiss banking license. MIG Bank has specialized in online forex trading since its foundation, establishing itself as one of the leading forex and CFD brokers for clients in over 120 countries. It is one of the top providers worldwide in this sector.

The purchase of MIG Bank will enable Swissquote to greatly expand its forex operations, which at a volume of CHF 158 billion accounted for 26.2 percent of total net revenues in the first half of 2013. In the same period, Swissquote and MIG Bank would have achieved a cumulative volume of CHF 483 billion. Going forward, net forex income is likely to represent about half of the total net revenues of the group.

Thanks to the acquisition, Swissquote will also enjoy a broader international presence in future, with locations in Switzerland (Gland, Zurich and Bern), Dubai, Malta, London and Hong Kong. The relevant authorities in Switzerland, the UK and Hong Kong have approved the transaction.

The purchase of MIG Bank was financed entirely with equity capital. The parties have agreed not to disclose the purchase price. Following the acquisition, Swissquote Bank will continue to have one of the highest core capital ratios among Swiss banks.

After Alpari transferred their US retail business to FXCM last week and OANDA acquired Currensee earlier this week, I can't help but wonder when the next global forex mega-merger will be announced.

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