BGC Partners (BGCP) Concludes ED Broking Group Acquisition
Zacks Investment Research | Feb 03, 2019 11:13PM ET
BGC Partners (NASDAQ:BGCP) has completed the acquisition of ED Broking Group (ED), an independent Lloyd's of London insurance broker. The buyout deal was announced in October 2018.
ED Broking Group will be operating as part of BGC Partner’s insurance division, which was established in 2017 with the acquisition of Besso Insurance Group. The CEO of ED Broking Group, Steve Hearn, will head BGC partner’s insurance division.
Per the terms of the agreement, BGC Partners has acquired 100% of ED Broking Group. Besso Insurance Group and ED Broking Group will have approximately 300 combined brokers operating across 10 countries. Further details of the deal remain undisclosed.
"We are delighted to complete the purchase of Ed, a company with a great reputation, a global footprint and an excellent management team that will continue to build on BGC's success in growing the insurance brokerage business," said president of BGC Partners, Shaun D. Lynn.
BGC Partners is likely to benefit from the robust reputation of ED Broking Group across property and casualty, energy, cargo, marine, financial and political risks, professional and executive risk, aerospace, accident and health, specialty and reinsurance businesses.
BGC Partners has been expanding inorganically over the past few years. Last November, the company completed the buyout of Poten & Partners Group, Inc. Prior to this, it had acquired Micromega Securities and Besso Insurance Group in 2017.
Over the past six months, shares of BGC Partners have lost 44.1% compared with the 13.4% decline of the industry it belongs to.
Currently, BGC Partners carries a Zacks Rank #5 (Strong Sell).
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