OvalX Sells Client Assets to Capital.com as Jump Capital Stops Support

OvalX, a leading spread-betting and CFD provider based in London, reportedly is selling its client assets to Capital.com, a Forex and CFD broker. Details of the transaction hasn't been disclosed.

In a meeting held recently with OvalX employees, Luca Merolla, CEO of OvalX, informed employees that the company's controlling shareholder, an American venture capital firm Jump Capital, had decided to stop funding OvalX, which has been experiencing declining performance, potentially leading to the end of OvalX's operations.

According to the financial result for fiscal year 2021 released by OvalX in last September, its revenue and profit had both declined compared with the previous year. In the fiscal year 2021, the total revenue of OvalX dropped by 24% to £24.2 million from £31.8 million in the previous year, and the net operating revenue fell from £21.3 million to £17.4 million on a yearly basis. the group's EBITDA was a £6.4 million loss compared to a £2.8 million EBITDA profit in 2020.

OvalX might be planning to close its business and consider a possible merger or asset sale, according to industry sources. In addition, the brokerage has started to lay off some of its team members, saying it is is in consultation with some employees.