BGC Plans to Sell Trayport
Two months after purchasing GFI, BGC announces it will sell Trayport in its Q1 financial earning report.
Cantor Fitzgerald will assist in the sale of Trayport, chairman and CEO Howard Lutnick said in the report.
"We expect numerous parties to be interested in acquiring this business at a valuation that reflects its high margins, growth rate, leading technology, and strategic importance in the global energy and commodities markets," Lutnick said. "We anticipate completing a transaction before the end of 2015. The gain from a sale of Trayport will be excluded from distributable earnings."
As for the rest of GFI, Lutnick said the front office operations of both firms will remain separately branded, but the support functions, technology and infrastructure have already begun to be integrated. Lutnick said by Q1 of 2016 the expenses of network infrastructure, telephone lines, datacenters, vendors, disaster recovery and interest expense will be reduced by at least $50 million a year.
"We also expect to increase productivity per broker and to continue converting voice and hybrid broking to higher margin fully electronic trading, all of which should lead to increased revenues and profitability," the CEO added. "By freeing up duplicative capital set aside for regulatory and clearing purposes, we will also be able to use our balance sheet more efficiently."
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