Declining OvalX Sells Client Base to Capital.com as Shareholder Pulls Support

OvalX is considering selling its assets after losing investment from shareholder Jump Capital due to declining results.

London-based CFD provider OvalX is reportedly selling its client base to forex and CFD broker Capital.com, but no details of the deal have been disclosed.

In September last year, OvalX released its annual report for fiscal year 2021. The company reported a decline in revenue and profit compared to 2020. OvalX's total revenue fell 24% to £24.2 million from £31.8 million in 2020. Net income fell to £17.4 million from £21.3 million. The group’s EBITDA also made an loss of £6.4 million.

OvalX announced to employees at a recent staff meeting that the company's controlling shareholder, American venture capital firm Jump Capital, has decided to stop investing in the declining OvalX, a move that could lead to the end of OvalX.

According to information from industry sources, OvalX may plan to shut down its operations and consider merging or selling its assets. In addition, the broker has already started laying off employees and is currently negotiating with some of them.