BGC Partners Closes Acquisition of Lloyd's of London Insurance Broker Besso.
28 February 2017 - US-based brokerage company BGC Partners, Inc. (NASDAQ: BGCP) has closed the acquisition of UK-based Lloyd's of London insurance broker Besso Insurance Group Ltd., the company said.
Under the terms of the agreement, an affiliate of BGC has acquired 100% of Besso for a total consideration of up to GBP 70.5m (USD 87.44m) on an enterprise-value basis.
The purchase price is to be satisfied by a mix of cash and BGC stock, to be paid in full only if certain performance targets are met.
For the years ended 31 December 2015 and 2016, Besso generated revenues of approximately GBP 38m and GBP 45m, respectively.
The transaction is expected to be immediately accretive upon closing.
Through its previous acquisition of US Real Estate Services business, Newmark Grubb Knight Frank, BGC Partners has demonstrated a proven track record of successfully building new brokerage verticals.
Since 2011, BGC has increased the revenue run-rate of its Real Estate Services business by more than five times to over USD 1bn annually.
Upon the close of the transaction, Bird will continue as chairman of Besso Insurance Group Ltd.
Robert Dowman and Russell Nichols will become joint CEOs, each reporting to Lynn.
BGC Partners is a global brokerage company servicing the financial and real estate markets. BGC owns GFI Group Inc., an intermediary and provider of trading technologies and support services to the global OTC and listed markets.
Founded in 1967, Besso offers insurance broking services across a number of divisions. The firm covers its markets globally from its headquarters in London, with additional overseas offices in Turkey, Brazil and Hong Kong.
Target: Besso Insurance Group
Buyer: BGC Partners
Deal size in USD: 87.44m
Type: Corporate Acquisition
Financing: Cash and Stock
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Feb 28, 2017|
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