BGC Group, Inc. (NASDAQ:BGC), a global brokerage and financial technology company, announced today that it has entered into an agreement to acquire OTC Global Holdings, LP, an institutional energy and commodities brokerage firm.
Through this acquisition, BGC Group will further expand and diversify its global Energy, Commodities, and Shipping (ECS) business.
OTC is one of the fastest growing energy and commodities brokerage firms, with global operations across North America, Europe, and Asia. Its brokerage services include crude and refined products, petrochemicals, natural gas, ship brokerage, and biofuels, amongst others. OTC’s product suite and client base are highly complementary to BGC’s existing ECS business and will create a comprehensive platform to serve the global energy and commodities market.
“OTC has built a premier global energy, commodities, and shipping business that is supported by world class talent,” said Howard Lutnick, Chairman and CEO of BGC Group. “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.”
“BGC has an incredible offering with a proven track record of growth and innovation,” said Joe Kelly, CEO of OTC Global Holdings. “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.”
Under the terms of the agreement, BGC expects to acquire OTC in a substantially all-cash transaction, which is subject to customary closing conditions, including applicable regulatory approvals.
Jefferies LLC is acting as exclusive financial advisor to OTC Global Holdings.
