BGC Partners Inc., a London and New York-based broker serving the financial and real estate markets, announced it has completed the acquisition of Besso Insurance Group Ltd., an independent Lloyd’s of London insurance broker specializing in property, casualty, marine, aviation, professional and financial risks and reinsurance.
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 ($87.6 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 Dec. 31, 2015 and 2016, Besso generated revenues of approximately £38 million ($47.2 million) and £45 million ($55.9 million), respectively. BGC expects the acquisition to be immediately accretive to distributable earnings per share upon closing. London-based Besso had approximately 100 front-office employees as of year-end 2016.
“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,” commented Shaun D. Lynn, president of BGC Partners.
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.
Source: BGC Partners
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