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BGC Group sells Rates Compression business Capitalab for $46M
The Fly

BGC Group sells Rates Compression business Capitalab for $46M

BGC Group (BGC) announced the sale of Capitalab, a company dealing in Rates Portfolio Compression and Margin Optimization, to Capitolis, a technology company. BGC expects to see continued growth and strong demand for its Fenics business, which generated more than $550M in revenue over the last 12 months. BGC received $46M in gross proceeds, subject to limited post-closing adjustments. The one-time gain associated with the transaction will be excluded from the company’s results for Adjusted Earnings. This represents a revenue multiple of approximately 7.5 times. BGC will retain its post-trade foreign exchange risk reduction business, which was previously included under the Capitalab brand and will be renamed Fenics NDF Match.

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