BGC Partners, Inc., a leading global brokerage and financial technology company, announced that it has completed the sale of its Insurance Brokerage business to The Ardonagh Group Limited (“Ardonagh”). The transaction was first announced in a press release on May 26, 2021.
MANAGEMENT COMMENTS:
Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, said: “We are pleased to have completed the sale of our Insurance Brokerage business to Ardonagh which delivers enormous value for our shareholders. The approximately $535 million in gross proceeds provides us with significant resources to continue repurchasing our shares and/or units and to accelerate Fenics growth.”
TRANSACTION DETAILS and financial impact:
Under the terms of the purchase agreement, Ardonagh acquired the equity of the entities that compromised BGC’s Insurance Brokerage business for approximately $535 million in gross proceeds, subject to limited post-closing adjustments.
The one-time gain associated with the transaction will be reflected 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.
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ADVISORS:
Cantor Fitzgerald & Co. and Bank of America served as financial advisors, and Bryan Cave Leighton Paisner LLP acted as counsel to BGC.
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