(RTTNews) - Insurance Brokerage BGC Partners, Inc. (BGCP) announced Wednesday that it has entered into an agreement to sell its Insurance Brokerage business for $500 million of cash consideration to The Ardonagh Group Ltd.
The transaction is expected to close in the second half of 2021, subject to customary closing conditions, including the receipt of required regulatory approvals.
BGC intends to use the proceeds from the sale to invest in its Fenics business, to repurchase BGC shares and/or units, and for general corporate purposes.
BGC said this sale further demonstrates its commitment to driving shareholder value like its previous sales of eSpeed and Trayport, as well as its IPO and tax-free spin-off of Newmark. This sale will help focus its resources on Insurance Brokerage business Fenics.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.