BGC Group unlocks value for shareholders with the sale of Rates Compression business Capitalab

BGC Group has announced the sale of its Rates Compression business, Capitalab, to Capitolis for $46 million in gross proceeds, representing a revenue multiple of approximately 7.5 times.

Rhea-AI Summary

BGC Group has announced the sale of its Rates Compression business, Capitalab, to Capitolis for $46 million in gross proceeds, representing a revenue multiple of approximately 7.5 times. The transaction demonstrates BGC's commitment to unlocking shareholder value while focusing on growing its high-margin, technology-driven Fenics business, which generated over $550 million in revenue in the last 12 months. BGC will retain its post-trade foreign exchange risk reduction business, previously under the Capitalab brand, which will be renamed Fenics NDF Match.

Positive

• Sale of Capitalab generates $46 million in gross proceeds
• Strong 7.5x revenue multiple achieved in the sale
• Fenics business generated over $550 million in revenue over last 12 months

Negative

• None.

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• Sale demonstrates BGC's commitment to unlocking value for shareholders
• BGC sells Capitalab for $46 million in gross proceeds, representing a revenue multiple of approximately 7.5 times

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- BGC Group, Inc. (Nasdaq: BGC) ("BGC" or "the Company") today announced the sale of Capitalab, a leader in Rates Portfolio Compression and Margin Optimization, to Capitolis, the technology company helping to create safer and more vibrant capital markets. BGC expects to see continued growth and strong demand for its higher-margin, technology-driven business, Fenics, which generated more than $550 million in revenue over the last 12 months.

"We are proud of the business we have built at BGC and believe Capitolis will be an excellent home for Capitalab, as it enters its next phase of growth," said Sean Windeatt, Chief Operating Officer and Global Co-Head of Brokerage of BGC Group. "The sale of Capitalab is yet another example of BGC unlocking value for its shareholders. We will continue to focus on growing our high-growth electronic offerings."

Under the terms of the purchase agreement, BGC received $46 million in gross proceeds, subject to limited post-closing adjustments. This represents a revenue multiple of approximately 7.5 times. The one-time gain associated with the transaction will be included 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.

BGC will retain its high-growth, post-trade foreign exchange risk reduction business, which was previously included under the Capitalab brand and will be renamed Fenics NDF Match.

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 U.S. interest rate futures exchange, spot foreign exchange platform and the world's fastest growing U.S. cash treasuries platform.

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, 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.

 

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SOURCE BGC Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did BGC Group (BGC) sell Capitalab for?

BGC Group sold Capitalab to Capitolis for $46 million in gross proceeds, representing a revenue multiple of approximately 7.5 times.

What is BGC Group (BGC) retaining after the Capitalab sale?

BGC is retaining its high-growth, post-trade foreign exchange risk reduction business, which was previously included under the Capitalab brand and will be renamed Fenics NDF Match.

How much revenue did BGC's Fenics business generate in the last 12 months?

BGC's Fenics business generated more than $550 million in revenue over the last 12 months.