London-based global broker Capital.com is taking steps to buy client assets from forex and CFD broker OvalX (formerly ETX Capital). Details of the deal were still unclear at press time.

Ovalx CEO Luca Merolla told employees at a recent meeting that the company's controlling shareholder, U.S. venture Capital firm JumpCapital, has decided to stop funding OvalX, which has been experiencing a sustained decline in performance, which could lead to the end of operations.

OvalX recently said it may make "strategic choices" after shutting down its operations, including a possible merger or asset sale. In addition, the broker has begun to lay off some team members, saying that it is in consultation with some employees.

According to OvalX's FY2021 business data released last September, its revenue and profit declined compared to the previous year. In fiscal 2021, the company's total revenue fell 24% to £24.2 million from £31.8 million in the previous year, while net operating income fell to £17.4 million from £21.3 million in the previous year. Its earnings before interest, tax, depreciation and amortization (EBITDA) net loss was £6.4 million, compared with a net profit of £2.8 million in fiscal 2020.

Swiss private equity firm Guru Captial took over ETX Capital in October 2020. Jump Capital, a U.S.-based venture capital firm, funded the acquisition. As a result, Monecor Limited, the London-based company that operates OvalX, is controlled by Jump Capital. In February 2021, ETX Captial changed its name to OvalX.