BGC Partners, a brokerage company servicing the financial and real estate markets, has completed its merger with GFI Group, a provider of trading technologies and support services to the global OTC and listed markets.
BGC, Jersey Partners, Inc. (JPI) New JP Inc. (New JPI) Michael A. Gooch, Colin Heffron, and certain subsidiaries of JPI and BGC closed on a previously agreed upon merger on 12 January 2016.
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Shortly following the completion of the JPI Merger, a subsidiary of BGC merged with and into GFI pursuant to a short-form merger under Delaware law, with GFI continuing as the surviving entity.
The Back-End Mergers allowed BGC to acquire the remaining approximately 33% of the outstanding shares of GFI common stock that BGC did not already own.
Following the closing of the Back-End Mergers, BGC and its affiliates now own 100% of the outstanding shares of GFI’s common stock.
In total, approximately 23.5 million shares of BGC Class A Common Stock and $111.3m in cash are expected to be issued or paid with respect to the closing of the Back-End Mergers, inclusive of adjustments.
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By GlobalDataThe total purchase consideration for all shares of GFI purchased by BGC is expected to be $750.5m.
Gooch and Heffron have resigned as directors of the board of directors of GFI as a condition to closing.
Gooch has retained the titles of vice chairman of BGC Partners, L.P. and chairman of the GFI Division, while Heffron will continue to be the CEO of the GFI Division.
BGC chairman and CEO Howard Lutnick said: "We are happy to have completed the final step in merging BGC and GFI. The combination dramatically increases the scale and scope of the Company, and we expect the resulting improvement in BGC’s economics to produce tremendous value for our investors.
"We have an amazing opportunity to further grow and build the combined Company as our significant balance sheet liquidity1 is coupled with both firms’ extraordinarily talented staff and market leading technology."
