Another boost for post-Brexit UK M&A as US broker agrees takeover deal
US interdealer broker BGC Partners today announced it has agreed to buy the UK’s Sunrise Brokers.
Founded in 1991, the independent UK firm offers broking services across equity, credit, FX, hybrid and commodity derivative asset classes.
Sunrise Brokers, which is being acquired for an undisclosed sum, has offices in London, New York and Hong Kong.
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News of the deal comes after Japanese lender SoftBank announced a £24.3bn deal for UK tech firm Arm.
After that deal was announced, City bankers and analysts told City PM they expect the Brexit vote, and subsequent weakening of sterling, to boost UK attractiveness to acquirers.
“There’s a spectrum of M&A that’s on the table at any one point in time,” Richard Windsor of Edison Investment Research told City PM “And the price of a transaction is a big cut-off point. If you move the price of that transaction 10 per cent to the left, then obviously more deals become viable.”
Elsewhere, Bank of America Merrill Lynch exec Simon Mackenzie-Smith told City PM: “This is likely to produce more M&A interest from buyers who have a positive, long-term approach that looks beyond the current political situation in the UK. We’re cautiously optimistic that there will be more activity over the next quarter as a result of this currency shift than there otherwise would have been post the referendum vote.”
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"This transaction enables us to further expand our equity derivatives offering and complements our existing financial services business," said Shaun D. Lynn, president of BGC Partners.
"As a recognised leader in its market segments, Sunrise Brokers is clearly a valuable addition to the BGC family of brands."