Dublin-listed financial spread betting firm WorldSpreads has confirmed the sale of its Irish division to management.
Led by co-founder and group chief operating officer Brian O'Neill, the management group will pay €9.9 million in cash for the business, along with the proceeds of the sale of almost 1.9 million shares.
The deal will be subject to approval from shareholders and the Financial Regulator.
The company said the sale would "considerably strengthen" the group's balance sheet and financial position, and give it extra resources to expand in markets with a higher margin.
WorldSpreads informed the stock market at the beginning of July that it had received an approach from management for the Irish business, but said there was no certainly that this would lead to any offer being made.
The company, which was founded in Dublin in 2000 by chief executive Conor Foley and Mr O'Neill, is listed on both the Irish and London stock exchanges.
The Dublin operation at the centre of the deal focuses almost exclusively on the Irish market and, since October last year, is regulated by the Financial Regulator. It employs around 20 people.
The London division, which has been regulated by Britain's Financial Services Authority since 2004, runs the business in both the UK and internationally, and accounts for the bulk of WorldSpreads' revenue.
WorldSpreads has operations in 12 other countries across Europe, including Russia, and also in Malaysia and South Africa. About 40 employees are based in London.