BGC Partners Inc. (NASDAQ:BGCP) to sell its trading platform to Nasdaq OMX Group

Posted on Apr 3 2013 - 9:12am by Steve Hackney

Boston, MA 04/03/2013 (wallstreetpr) – The NASDAQ Inc has decided to buy a eSpeed, a type of an electronic trading system for the U.S. Treasuries from the company BGC Partners, Inc. (NASDAQ:BGCP). The cost which the Nasdaq is paying is about 750 million dollars. Moreover it ispaid in cash. It has decided to give one of the largest stock markets of the U.S. a foothold in terms of the fixed income. The share prices of the BGC shares rose to about 37 percent after the market was closed. Moreover Nasdaq is also trying to issue about more than 15 million common shares over a period of the 15 years as a part of the acquisition so as to push the potential value of this transaction to about 1.23 billion dollars. This fact was revealed by the e-mail statements between these two big companies.

This machine Espeed which was founded by Cantor Fitzgerald in about 1996 which is issued by the banks worldwide so as to trade some currencies or the bonds. The chief executive officer of the Nasdaq Robert Greifeld is also joining some other exchange executives using some of the takeovers so as to boost their level of the profit which may be declining in the stock trading. The main operator of this biggest American stock trading venue, NYSE Euronext agreed to have some commodity exchange in the last December for about 8 billion dollars. The stock of the BGC has dropped to about 59 percent since last two years and closed at about 3.85 dollars, but after this agreement to buy that Espeed, it almost jumped to about 7.57 dollars. This electronic trading platform which the Nasdaq is buying generated a revenue of about 100 million dollars last year.

The total sale of the BGC will be about as large as some BGC’s fully diluted market value. This agreement is sure to bring some economic changes in both the companies and may be it would be much higher. This agreement has already started showing some progress. The share prices which were used to be really less has gone really high. It has gone as high as about almost an increase of more than 5o percent of the past share values. These all agreement sra ereally very much important in this economic world. Although this agreement has really made fire in the market and has brought almost a revolution in the share prices and the amount of share increased in both the companies.

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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