International Assets (IAAC), FCStone Group (FCSX) Agree To A Merger of Equals

July 2, 2009 8:04 AM EDT

International Assets Holding Corporation (Nasdaq: IAAC) and FCStone Group, Inc. (Nasdaq: FCSX) announced that they have signed a definitive agreement to merge in a share swap that creates a combined company with a market capitalization of approximately $260 million.

The transaction, structured as a merger of equals, will create a combined entity that will serve more than 10,000 customers from an employee base of 650 people and offices in eleven countries. Based on reported results for the last four fiscal quarters for International Assets and FCStone, the combined company has an annual revenue base of approximately $411 million and as of the most recent balance sheet dates, total combined assets valued at $2.3 billion and total combined shareholders equity of $253 million.

Under the merger agreement, FCStone common shareholders will receive .2950 shares of International Assets common stock for each share they own. International Assets' current stockholders will own approximately 52.5% of International Assets following the merger and FCStone's current stockholders will own the remaining approximately 47.5%. Directors and management of the combined company will own approximately 26% of the equity. The merger is expected to be tax free to stockholders of both companies. International Assets will continue to list its common stock on the NASDAQ Global Market and trade under the symbol IAAC.

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