13 January, AtoZForex – Along with the release of other key financial metrics, BGC Partners -- a leading global brokerage company servicing the financial and real estate markets -- announced the completion of a merger with GFI Group Inc., a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets. This deal is in addition to BGC’s recently concluded merger with Jersey Partners, Inc. ("JPI,").
Due to the BGC GFI merger, GFI has now offered shareholders holding the remaining outstanding shares of GFI common stock, other than those held by BGC and its subsidiaries, converting these shares into “the right to receive an amount in cash equal to $6.10 per GFI share.”
Shaun D. Lynn, President of BGC, said:
"The addition of GFI has already contributed greatly to what we expect to be a record year of distributable earnings for the Company. While the front office operations of BGC and GFI will remain separately branded companies, we continue to make excellent progress on integrating our back office, technology, and infrastructure. We remain on target to reduce our Financial Services expense annual run rate by at least $90 million by the first quarter of 2017.2 We also expect to generate increased productivity per broker, continue converting voice and hybrid broking to more profitable fully electronic trading, and to grow our high-margin market data, software solutions, and post-trade businesses, all of which should lead to further increases in revenues, profitability, and cash flow.
Stock distribution details
For the BGC GFI merger, on aggregate, approximately 23.5 million shares of BGC Class A Common Stock and $111.3 million in cash are expected to be issued or paid with respect to the closing of the Back-End Mergers, inclusive of adjustments. The total purchase consideration for all shares of GFI purchased by BGC is estimated at $750.5 million, net of the $250.0 million note previously issued to GFI by BGC, which is eliminated in consolidation.
As a condition to closing, Messrs. Gooch and Heffron have resigned as directors of the board of directors of GFI. Mr. Gooch retains the titles of Vice Chairman of BGC Partners, L.P. and Chairman of the GFI Division, while Mr. Heffron continues to be the CEO of the GFI Division.
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