- Sale demonstrates BGC's commitment to unlocking value for
shareholders
- BGC sells Capitalab for $46
million in gross proceeds, representing a revenue multiple
of approximately 7.5 times
NEW
YORK, Dec. 3, 2024 /PRNewswire/ -- BGC
Group, Inc. (Nasdaq: BGC) ("BGC" or "the Company") today
announced the sale of Capitalab, a leader in Rates Portfolio
Compression and Margin Optimization, to Capitolis, the technology
company helping to create safer and more vibrant capital markets.
BGC expects to see continued growth and strong demand for its
higher-margin, technology-driven business, Fenics, which generated
more than $550 million in revenue
over the last 12 months.
"We are proud of the business we have built at BGC and believe
Capitolis will be an excellent home for Capitalab, as it enters its
next phase of growth," said Sean
Windeatt, Chief Operating Officer and Global Co-Head of
Brokerage of BGC Group. "The sale of Capitalab is yet another
example of BGC unlocking value for its shareholders. We will
continue to focus on growing our high-growth electronic
offerings."
Under the terms of the purchase agreement, BGC received
$46 million in gross proceeds,
subject to limited post-closing adjustments. This represents a
revenue multiple of approximately 7.5 times. The one-time gain
associated with the transaction will be included in BGC's
consolidated results under U.S. Generally Accepted Accounting
Principles (GAAP), but will be excluded from the Company's results
for Adjusted Earnings.
BGC will retain its high-growth, post-trade foreign exchange
risk reduction business, which was previously included under the
Capitalab brand and will be renamed Fenics NDF Match.
About BGC Group, Inc.
BGC Group, Inc. (Nasdaq: BGC) is
a leading global marketplace, data, and financial technology
services company for a broad range of products, including fixed
income, foreign exchange, energy, commodities, shipping, equities,
and now includes the FMX Futures Exchange. BGC's clients are many
of the world's largest banks, broker-dealers, investment banks,
trading firms, hedge funds, governments, corporations, and
investment firms.
BGC and leading global investment banks and market making firms
have partnered to create FMX, part of the BGC Group of companies,
which includes a U.S. interest rate futures exchange, spot foreign
exchange platform and the world's fastest growing U.S. cash
treasuries platform.
For more information about BGC, please visit www.bgcg.com.
Discussion of Forward-Looking Statements about
BGC
Statements in this document regarding BGC that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. These
include statements about the Company's business, results, financial
position, liquidity and outlook, which may constitute
forward-looking statements and are subject to the risk that the
actual impact may differ, possibly materially, from what is
currently expected. Except as required by law, BGC undertakes no
obligation to update any forward-looking statements. For a
discussion of additional risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see BGC's Securities and Exchange
Commission ("SEC") filings, including, but not limited to, the risk
factors and Special Note on Forward-Looking Information set forth
in these filings and any updates to such risk factors and Special
Note on Forward-Looking Information contained in subsequent reports
on Form 10-K, Form 10-Q or Form 8-K.
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SOURCE BGC Group, Inc.