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BGC Group has announced its agreement to acquire OTC Global Holdings, LP, in a move set to strengthen its position in energy and commodities markets.
The predominantly cash transaction, subject to regulatory approvals, will see BGC take control of what it describes as the largest independent institutional energy and commodities brokerage firm.
OTC Global Holdings operates across North America, Europe, and Asia, offering brokerage services in crude and refined products, petrochemicals, natural gas, ship brokerage, and biofuels. The acquisition is expected to expand BGC's Energy, Commodities, and Shipping (ECS) business.
Howard Lutnick, Chairman and CEO of BGC Group, said: "OTC has built a premier global energy, commodities, and shipping business that is supported by world class talent. This acquisition will complement our existing ECS business and will enhance our ability to deliver a comprehensive, best-in-class offering to our global client base. We look forward to welcoming the OTC team onto the BGC platform, combining our innovative solutions to drive greater results for our clients."
Joe Kelly, CEO of OTC Global Holdings, commented: "BGC has an incredible offering with a proven track record of growth and innovation. We have built something very special and unique at OTC. We look forward to joining BGC's platform and believe that together we will become a leading global broker for energy, commodities, and shipping products, delivering unparalleled value to our clients worldwide."
Jefferies LLC is serving as exclusive financial adviser to OTC Global Holdings for the transaction. Financial terms were not disclosed.
BGC Group, listed on Nasdaq under the ticker BGC, operates a marketplace and financial technology services platform. The company recently established FMX, a partnership with investment banks and market makers, which includes a U.S. interest rate futures exchange and spot foreign exchange platform.
