Davis Polk is advising GAIN Capital Holdings, Inc. in connection with its approximately $118 million acquisition of City Index (Holdings) Limited. The consideration in the transaction is cash, stock and convertible notes of Gain. The transaction, which is subject to approval by GAIN Capital stockholders, regulatory approvals and customary closing conditions, is expected to close in the first quarter of 2015.

GAIN Capital is a Bedminster, New Jersey-based provider of innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities and global equities. Founded in London in 1983 as one of U.K.’s first spread betting companies, City Index is one of the world’s leading providers of CFDs, forex and U.K. spread betting, offering more than 10,000 products across equity, index, FX, commodity and bond CFDs and spread bets.

The Davis Polk corporate team includes partners Leonard Kreynin and Will Pearce and associates Nathan Lee and Boyoon Choi. Partners Jonathan Cooklin and Rachel D. Kleinberg, and associate Dominic Foulkes are providing tax advice. Partner Mark M. Mendez and associate Robert Stewart are providing capital markets advice. Members of the Davis Polk team are based in the London, New York and Menlo Park offices.