City Index is to acquire IFX, the financial spread betting company, for £58m. The 180 pence per share offer represents a premium of 15 per cent on IFX's share price on 25th April, when City's potential bid was announced. The two companies both operate in similar markets, with a strong presence in spread betting, but City Index is more established in contracts for difference while IFX is better known internationally, with a thriving foreign exchange operation. The combined group will have revenues of £60m and profits of £11.3m. As part of the deal, IFX group will be de-listed from the London Stock Exchange. City Index is owned by chief executive of ICAP and Conservative Party donor Michael Spencer.