Fintech firm BGC Group (Nasdaq: BGC) revealed it has sold its Capitalab division to Capitolis, a technology firm focused on enhancing capital market safety and efficiency.
BGC Group Sells Capitalab Business to Unlock Shareholder Value
The transaction, valued at $46 million, reflects a revenue multiple of approximately 7.5 times, underscoring the strategic significance of the deal.
BGC Group explained in its press release that Capitalab specialises in rates portfolio compression and margin optimisation, critical components in streamlining trading operations.
BGC will retain its post-trade foreign exchange risk reduction business, previously housed under the Capitalab brand. This unit, now renamed Fenics NDF Match, remains a key part of BGC’s high-growth portfolio.
The sale aligns with BGC’s focus on its Fenics business, a technology-driven segment that has delivered over $550 million in revenue in the past year.
Fenics, with its higher-margin operations, continues to be a cornerstone of BGC’s strategy to drive innovation and shareholder value. BGC said it expects the business to see continued growth and strong demand.
Sean Windeatt, BGC’s COO and Global Co-Head of Brokerage, commented: “The sale of Capitalab is yet another example of BGC unlocking value for its shareholders. We will continue to focus on growing our high-growth electronic offerings.”
Proceeds from the sale will bolster BGC’s ongoing development of its technology platforms, while the one-time gain will feature in the company’s GAAP financial results, excluding adjusted earnings reporting.
