Spreadbetting company WorldSpreads has agreed a deal to sell its Irish business to Spreadbetting Limited for €9.9m in cash and the proceeds from the placing of 1.9 million shares.
Spreadbetting Limited is a company owned by members of the management of the Irish business including Brian O'Neill and Fergus Rice.
Following the disposal, WorldSpreads Group will no longer have any Irish operations or business in Ireland and the group will only keep a small support business in Ireland to manage the IT platform and related infrastructure.
The rest of the company will continue to be headed up by CEO Conor Foley, who will be based in London. The main trading desk will be London and the group will target international business.
WorldSpreads decided to sell its Irish arm as it felt that the maintenance of two fully fledged and separately regulated trading desks in the same time zone and the duplication of cost and functions, had become onerous and inefficient.
The company said the deal is expected to 'considerably' strengthen the group's balance sheet and provide it with additional resources to expand and drive growth in higher margin international markets.