BGC Partners, Inc. (NASDAQ: BGCP) ("BGC Partners", "BGC" or "the Company"1, a leading global brokerage company servicing the financial and real estate markets, today announced that it has completed the acquisition of Besso Insurance Group Limited ("Besso")2, an independent Lloyd's of London insurance broker with a strong reputation across Property, Casualty, Marine, Aviation, Professional and Financial Risks and Reinsurance.
Shaun D. Lynn, President of BGC Partners, commented on today's announcement: "We are delighted to complete the purchase of Besso, a company with a great reputation, a strong record of growth and an excellent management team that will provide our insurance brokerage business with a strong foundation."
Furthermore, Christopher Smith, a BGC executive, will join the Besso Board of Directors to work with the existing management team and drive the strategic growth plan.
Transaction Details
Under the terms of the agreement, an affiliate of BGC has acquired 100 percent of Besso for a total consideration of up to £70.5 million on an enterprise-value basis. The purchase price is to be satisfied by a mix of cash and BGC stock, to be paid in full only if certain performance targets are met. For the years ended December 31, 2015 and 2016, Besso generated revenues of approximately £38 million and £45 million, respectively3. BGC expects the acquisition to be immediately accretive to distributable earnings per share upon closing4. Besso had approximately 100 front-office employees as of year-end 2016.
