BGC to Acquire GFI

After a long running battle, GFI’s board of directors has accepted BGC Partners’ offer of $6.10 per share in cash, valuing the global OTC broker at about $778 million.

As part of the agreement, Global brokerage group BGC shall designate six out of eight directors of the expanded GFI Board. It has given all GFI shareholders until February 26, 2015 the opportunity to tender in this final extension. BGC exceeded its 45% requirement with nearly 48% of shares tendered, and because it wants to make closing even more certain, BGC reduced the minimum tender condition to 43%.

GFI is expected to operate as a division of BGC, reporting into Shaun Lynn, president of BGC, and its financial results are expected to be consolidated as part of BGC. Going forward, BGC and GFI are expected to remain separately branded divisions. GFI’s current executive chairman, Michael Gooch, and its current chief executive officer, Colin Heffron, are expected to remain executives of GFI and members of its board of directors.

Howard Lutnick, chairman and chief executive officer of BGC, said: “We are thrilled to welcome the world class people from GFI into the BGC family. We have an extraordinary opportunity ahead to grow with BGC’s strong financial position coupled with both companies’ extraordinarily talented brokers and market leading technology. We look forward to delivering strong earnings and cash flow growth to our shareholders going forward.”

Colin Heffron, chief executive officer of GFI, said: “I believe GFI’s leading technology and advanced global market position will enhance the services provided to customers of our combined business. More importantly, we look forward to working together as a separately branded division to continue providing market-leading intermediary services and trading technologies.”