BGC Group completes acquisition of OTC Global Holdings
BGC Group (Nasdaq: BGC) has completed its acquisition of OTC Global Holdings for $325 million in a predominantly cash transaction. OTC, a leading energy and commodities brokerage firm, generated over $400 million in revenue for 2024, representing an acquisition multiple of less than 0.8x revenue.
The integration establishes BGC as the world's premier energy, commodities, and shipping (ECS) brokerage firm, with ECS becoming BGC's largest asset class. This strategic move follows BGC's recent acquisition of Sage Energy, further strengthening its market position.
The transaction, which closed after Q1 2025, is expected to be immediately accretive. BGC's Co-CEOs John Abularrage, JP Aubin, and Sean Windeatt will lead the expanded operations, while OTC's CEO Joe Kelly will continue driving growth within the combined entity.
BGC Group (Nasdaq: BGC) ha completato l'acquisizione di OTC Global Holdings per 325 milioni di dollari in una transazione prevalentemente in contante. OTC, una delle principali società di intermediazione nel settore energetico e delle materie prime, ha generato oltre 400 milioni di dollari di fatturato per il 2024, rappresentando un multiplo di acquisizione di meno di 0,8 volte il fatturato.
L'integrazione stabilisce BGC come la principale società di intermediazione mondiale nel settore energetico, delle materie prime e della spedizione (ECS), con ECS che diventa la classe di attivo più grande di BGC. Questa mossa strategica segue l'acquisizione recente di Sage Energy da parte di BGC, rafforzando ulteriormente la sua posizione di mercato.
La transazione, che si è conclusa dopo il primo trimestre del 2025, è prevista per essere immediatamente accrescitiva. I Co-CEO di BGC, John Abularrage, JP Aubin e Sean Windeatt, guideranno le operazioni espanse, mentre il CEO di OTC, Joe Kelly, continuerà a promuovere la crescita all'interno dell'entità combinata.
BGC Group (Nasdaq: BGC) ha completado su adquisición de OTC Global Holdings por 325 millones de dólares en una transacción predominantemente en efectivo. OTC, una firma líder en corretaje de energía y materias primas, generó más de 400 millones de dólares en ingresos para 2024, lo que representa un múltiplo de adquisición de menos de 0.8x ingresos.
La integración establece a BGC como la principal firma de corretaje de energía, materias primas y transporte (ECS) del mundo, con ECS convirtiéndose en la clase de activo más grande de BGC. Este movimiento estratégico sigue a la reciente adquisición de Sage Energy por parte de BGC, fortaleciendo aún más su posición en el mercado.
Se espera que la transacción, que se cerró después del primer trimestre de 2025, sea inmediatamente accretiva. Los Co-CEOs de BGC, John Abularrage, JP Aubin y Sean Windeatt, liderarán las operaciones ampliadas, mientras que el CEO de OTC, Joe Kelly, continuará impulsando el crecimiento dentro de la entidad combinada.
BGC 그룹 (Nasdaq: BGC)는 OTC 글로벌 홀딩스를 3억 2500만 달러에 주로 현금 거래로 인수 완료했습니다. OTC는 에너지 및 원자재 중개업체로, 2024년에는 4억 달러 이상의 수익을 올렸으며, 이는 0.8배 미만의 인수 배수를 나타냅니다.
이번 통합을 통해 BGC는 세계 최고의 에너지, 원자재 및 운송(ECS) 중개업체로 자리매김하며, ECS는 BGC의 가장 큰 자산 클래스로 자리잡게 됩니다. 이 전략적 움직임은 BGC가 최근 인수한 Sage Energy에 이어 시장 내 입지를 더욱 강화하는 것입니다.
2025년 1분기 이후에 마감된 이번 거래는 즉각적인 수익 증가가 예상됩니다. BGC의 공동 CEO인 John Abularrage, JP Aubin 및 Sean Windeatt가 확대된 운영을 이끌며, OTC의 CEO인 Joe Kelly는 통합된 실체 내에서 성장을 계속 추진할 것입니다.
BGC Group (Nasdaq: BGC) a finalisé son acquisition de OTC Global Holdings pour 325 millions de dollars dans une transaction principalement en espèces. OTC, un cabinet de courtage en énergie et en matières premières de premier plan, a généré plus de 400 millions de dollars de revenus pour 2024, représentant un multiple d'acquisition de moins de 0,8x le chiffre d'affaires.
L'intégration établit BGC comme la principale société de courtage au monde dans les domaines de l'énergie, des matières premières et du transport (ECS), ECS devenant la plus grande classe d'actifs de BGC. Ce mouvement stratégique fait suite à l'acquisition récente de Sage Energy par BGC, renforçant ainsi sa position sur le marché.
La transaction, qui a été clôturée après le premier trimestre 2025, devrait être immédiatement accretive. Les Co-CEOs de BGC, John Abularrage, JP Aubin et Sean Windeatt, dirigeront les opérations élargies, tandis que le PDG d'OTC, Joe Kelly, continuera à stimuler la croissance au sein de l'entité combinée.
BGC Group (Nasdaq: BGC) hat die Übernahme von OTC Global Holdings für 325 Millionen Dollar in einer überwiegend baren Transaktion abgeschlossen. OTC, ein führendes Unternehmen im Bereich Energie- und Rohstoffvermittlung, erzielte im Jahr 2024 über 400 Millionen Dollar Umsatz, was einem Übernahme-Multiple von weniger als 0,8x Umsatz entspricht.
Die Integration positioniert BGC als die weltweit führende Brokerage-Firma für Energie, Rohstoffe und Versand (ECS), wobei ECS zur größten Vermögensklasse von BGC wird. Dieser strategische Schritt folgt auf die kürzliche Übernahme von Sage Energy durch BGC, die ihre Marktposition weiter stärkt.
Die Transaktion, die nach dem ersten Quartal 2025 abgeschlossen wurde, wird voraussichtlich sofort ertragssteigernd sein. Die Co-CEOs von BGC, John Abularrage, JP Aubin und Sean Windeatt, werden die erweiterten Operationen leiten, während OTC-CEO Joe Kelly weiterhin das Wachstum innerhalb der kombinierten Einheit vorantreiben wird.
- Immediately accretive acquisition
- OTC's strong revenue of $400M in 2024
- Favorable acquisition multiple of less than 0.8x revenue
- ECS becomes BGC's largest asset class
- Strengthens BGC's market leadership in energy, commodities, and shipping
- Substantial cash outlay of $325M for acquisition
- Post-closing adjustments may affect final transaction value
Insights
BGC Group's
This acquisition immediately strengthens BGC's market position in the energy, commodities, and shipping (ECS) sector, now established as the company's largest asset class. The all-cash structure demonstrates BGC's financial flexibility while the expected immediate accretion indicates confidence in near-term value creation without dilution concerns.
The transaction fundamentally transforms BGC's business mix, potentially reducing cyclical exposure to traditional financial services markets. Energy and commodities brokerage revenues often follow different cycles than other financial services, providing portfolio diversification benefits.
What makes this particularly noteworthy is the acquisition multiple. At less than 0.8x revenue, BGC has secured this strategic asset at a valuation that provides substantial room for upside. For context, profitable financial services firms typically trade at 2-3x revenue multiples, suggesting significant embedded value if integration proceeds smoothly.
This acquisition, combined with the recent Sage Energy purchase, demonstrates an aggressive but disciplined expansion strategy in the ECS space, positioning BGC as the dominant global player in this specialized brokerage segment.
This acquisition presents a textbook case of complementary business integration with clear strategic alignment. BGC's description of OTC's product suite as "highly complementary" suggests minimal operational redundancies and greater potential for revenue synergies rather than just cost-cutting.
The leadership structure indicates thoughtful integration planning. By appointing three Co-CEOs including existing leadership, BGC creates continuity while bringing OTC's expertise into the combined entity. Retaining OTC's CEO (Joe Kelly) signals commitment to preserving the acquired company's cultural and operational strengths.
The transaction timing - completing just after Q1 2025 - creates a clean break for financial reporting while allowing integration planning during the preceding period since the initial announcement. This approach typically facilitates smoother operational transitions.
BGC's characterization of becoming "the world's premier energy, commodities, and shipping broker" through this acquisition indicates a transformative scale achievement that likely delivers network effect advantages. In brokerage businesses, liquidity attracts liquidity - as the largest player, BGC can now offer superior execution and potentially command premium pricing.
The sequential acquisition strategy (Sage Energy followed by OTC) demonstrates a methodical approach to building market dominance rather than a single large, high-risk transaction. This incremental integration approach typically yields higher success rates in maintaining business continuity and achieving strategic objectives.
Acquisition expected to be immediately accretive and generate significant value for clients and shareholders
With the integration of OTC's highly complementary product suite, BGC is poised to deliver even greater value to its clients and stakeholders as the leading global energy, commodities, and shipping ("ECS") brokerage firm.
"The completion of this acquisition marks a transformative step for BGC, that firmly establishes our company as the world's premier energy, commodities, and shipping broker," said Sean Windeatt, Co-CEO of BGC Group. "By leveraging our combined expertise, talent, and resources across BGC's global platform, we are set to redefine the global ECS landscape and deliver substantial value to our clients and shareholders. We look forward to working with our new OTC colleagues and building on our shared successes."
"Joining BGC, renowned for its long track record of growth and innovation, was a strategic and natural progression for us," said Joe Kelly, CEO of OTC Global Holdings. "We are incredibly proud of the world-class organization we built at OTC, and I look forward to continuing to drive growth in the industry, enhancing our service offerings and delivering unparalleled value to our clients alongside our new BGC colleagues."
The success of BGC's ECS business has been driven by the instrumental efforts of its new Co-CEOs, John Abularrage, JP Aubin, and Sean Windeatt. Combined with the recent acquisition of Sage Energy, this milestone marks a significant step in the company's growth strategy, firmly establishing ECS as BGC's largest asset class.
Transaction Details and Financial Impact:
Under the terms of the agreement, BGC acquired
OTC generated revenues of over
BGC's first quarter 2025 outlook issued on February 14, 2025, and its updated outlook issued on March 26, 2025, did not include OTC financial results, as the transaction was completed following the end of the first quarter 2025.
Jefferies, LLC served as the exclusive financial advisor to OTC Global Holdings, LP.
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
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, as well as about the acquisition of OTC (the "Acquisition") and the anticipated effect of the Acquisition on BGC's business, 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/bgc-group-completes-acquisition-of-otc-global-holdings-302416982.html
SOURCE BGC Group, Inc.
FAQ
What is the value of BGC's acquisition of OTC Global Holdings?
How much revenue did OTC Global Holdings generate in 2024?
What is the revenue multiple for BGC's acquisition of OTC Global Holdings?
How will the OTC Global Holdings acquisition impact BGC's financial performance?
What position does the OTC acquisition secure for BGC in the market?
