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NEW YORK - BGC Group, Inc. (NASDAQ:BGC), a prominent global brokerage and financial technology firm with a market capitalization of $4.43 billion and strong revenue growth of 11.5% in the past year, has completed its acquisition of OTC Global Holdings, LP, an energy and commodities brokerage company. The deal, valued at $325 million, was predominantly a cash transaction. According to InvestingPro analysis, BGC currently maintains a FAIR financial health score, suggesting solid operational stability.
The acquisition, which was finalized following the first quarter of 2025, is expected to be immediately accretive to BGC’s earnings. OTC Global Holdings reported revenues exceeding $400 million for the year 2024, indicating an acquisition multiple of less than 0.8 times revenue. This strategic move builds upon BGC’s existing annual revenue base of $2.17 billion and could further enhance its market position. Based on InvestingPro data, analysts have set price targets ranging from $12 to $16, reflecting confidence in the company’s growth strategy.
Sean Windeatt, Co-CEO of BGC Group, remarked on the acquisition’s completion, emphasizing the company’s reinforced position as a leading global broker in the energy, commodities, and shipping sectors. He noted the potential for redefining the global ECS landscape and delivering significant value to clients and shareholders.
Joe Kelly, CEO of OTC Global Holdings, expressed his confidence in the strategic alignment with BGC, highlighting the opportunity to enhance service offerings and drive further growth in the industry.
The successful growth of BGC’s ECS business has been attributed to the leadership of its Co-CEOs, including the recent acquisition of Sage Energy. This latest transaction cements ECS as BGC’s largest asset class.
Jefferies, LLC acted as the exclusive financial advisor to OTC Global Holdings during the acquisition process.
BGC Group’s portfolio includes a broad range of marketplace, data, and financial technology services for various products. With the addition of FMX Futures Exchange to its offerings, BGC continues to expand its reach in the financial sector.
This news article is based on a press release statement from BGC Group, Inc. The information provided is factual, with the expectation that the acquisition will positively impact BGC’s financial performance and market position. For deeper insights into BGC’s financial health, valuation metrics, and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks. However, forward-looking statements regarding BGC’s business and the anticipated effects of the acquisition involve risks and uncertainties, and actual results may differ from current expectations.
In other recent news, BGC Group, Inc. has announced a private offering of $700 million in senior unsecured notes with a 6.150% interest rate, maturing in 2030. The company plans to use the proceeds to manage its existing debt, including repurchasing and redeeming $288.2 million of its 4.375% Senior Notes due in 2025. Additionally, BGC Group has reaffirmed its financial outlook for the first quarter of 2025, maintaining its revenue and pre-tax adjusted earnings projections. The company continues to use non-GAAP financial measures to provide a more detailed understanding of its performance.
In a strategic move, BGC Group is set to acquire OTC Global Holdings, positioning itself as the world’s largest energy and commodities broker. Piper Sandler has maintained an Overweight rating on BGC Group with a $12 price target, expressing optimism about the company’s prospects under its new co-CEOs. The analysts highlight the favorable economic conditions for BGC’s brokerage business amidst global market uncertainties. Piper Sandler also expressed a positive outlook for BGC Partners, Inc. ahead of the fourth-quarter 2024 earnings, citing a robust trading environment as a contributing factor.
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