BGC Partners buys Lloyd’s broker Besso in deal worth £71m
Lloyd's of London broker Besso has been swallowed up by US broking giant BGC Partners in a deal that values the firm at £71m.
The purchase provides an exit for the Besso's owners – its senior management team and private equity house BP Marsh.
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The fund's share of the proceeds totalled £20.6m net of transaction costs, marginally ahead of the £20.1m valuation BP Marsh ascribed to its share of the business in July 2016.
However, the returns are substantially more than the £13.9m BP Marsh calculated in August 2015 when it first kicked off a "strategic review" in conjunction with advisers Canaccord Genuity.
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Current Besso chairman Colin Bird will continue in his role post-completion and hailed the transaction as increasing the prospects for the Lloyd's broker to grow. He said:
The opportunities this deal presents are substantial. BGC and its affiliates have deep relationships with leading companies in real estate, financial services, and other industries, which we believe will help us grow our franchise.