Proposed sale of Nadex and Small Exchange

RNS Number : 1717U

IG Group Holdings plc

01 December 2021

 

IG Group Holdings plc

LEI No: 2138003A5Q1M7ANOUD76

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

FOR IMMEDIATE RELEASE

IG GROUP HOLDINGS PLC

Proposed sale of Nadex and Small Exchange

1 December 2021

IG Group Holdings plc ("IG" and, together with its subsidiaries, the "Group") today announces the proposed sale of North American Derivatives Exchange, Inc. ("Nadex") and Small Exchange, Inc. ("Small Exchange"), the latter of which the Group owns approximately 39%, to Foris DAX Markets, Inc. (part of the group of companies trading as "crypto.com").

The proposed sale is a cash transaction with an approximate, aggregate price for the IG shareholdings in both companies of $216 million. The closing of the transaction is expected to be in the first half of 2022, subject to the satisfaction of customary conditions, including regulatory review.

This transaction does not materially impact full-year adjusted operating profit expectations nor the medium-term revenue growth guidance for High Potential Markets previously provided in July 2021.

"We're really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses. This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business through our tastytrade and tastyworks franchises, both in the US and internationally, where we see significant room for growth." said June Felix, CEO, IG Group.

Contact information

IG Group Investor Relations	IG Group Press	FTI Consulting
Richard Heading / Simon Wright 020 7573 0742 / 0099 [e-mail]	Ramon Kaur 020 7896 0011 / 07388 440 127 [e-mail]	Neil Doyle 0777 1978 220

Foris DAX Markets, Inc. (part of the group of companies trading as "crypto.com")

Founded in 2016, Crypto.com today serves over 10 million customers with the world's fastest growing crypto app, along with the Crypto.com Exchange and Crypto.com DeFi Wallet. Crypto.com NFT is the premier platform for collecting and trading NFTs, carefully curated from the worlds of art, design, entertainment and sports. Information obtained from the crypto.com website, available here: https://crypto.com/about.

North American Derivatives Exchange, Inc. ("Nadex")

Nadex is a US derivatives exchange for binary options, call spreads, and knock-outs. It provides access to opportunities across global financial markets, including US and international indices, major forex pairs, commodities and economic events. Nadex is regulated by the Commodity Futures Trading Commission (CFTC).

Small Exchange, Inc. ("Small Exchange")

Small Exchange is a CFTC approved US futures exchange which was founded in January 2019 and opened for trading on June 1, 2020. Small Exchange offers small, standardised futures products on a range of underlying products to simplify access to the futures markets.

Disclaimer - forward-looking statements

This announcement may contain forward-looking statements about IG and its subsidiaries (the "Group"). Such forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "projects", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology.  

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are beyond IG's control and are based on IG's beliefs and expectations about future events as of the date the statements are made. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including those set out under "Principal Risks" in IG's Annual Report for the financial year ended 31 May 2021. The Annual Report can be found on IG's website (www.iggroup.com).

Forward-looking statements speak only as of the date they are made. Except as required by applicable law and regulation, IG undertakes no obligation to update these forward-looking statements.

Some numbers and period on period percentages in this statement have been rounded or adjusted to ensure consistency with the financial statements.  This may lead to differences between subtotals and the sum of individual numbers as presented.  Acronyms used in this report are as defined in the Group's Annual Report.

No offer or solicitation

This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction.

No profit forecasts or estimates

No statement in this announcement is intended as a profit forecast or estimate for any period and no statement in this announcement should be interpreted to mean that earnings or earnings per share for IG Group Holdings plc for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per share for IG Group Holdings plc.

About IG

IG Group has been at the forefront of trading innovation since 1974. Since then, we've evolved into a global fintech company incorporating the IG, tastytrade, IG Prime, Spectrum and DailyFX brands, with a presence in Europe, North America, Africa, Asia-Pacific and the Middle East. Our award-winning products and platforms empower ambitious people the world over to unlock opportunities around the clock, giving them access to over 19,000 financial markets. Today, more than 400,000 clients call IG Group home.

IG Group Holdings plc is an established member of the FTSE 250 and holds a long-term investment grade credit rating of BBB- with a stable outlook from Fitch Rating.

 

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