BGCP - BGC Partners sells insurance brokerage for $500M to buy back shares

BGC Partners (BGCP) stock gains 8.8% after the brokerage and fintech firm agrees to sell its insurance brokerage business to The Ardonagh Group for $500M in cash.BGCP plans to use the proceeds to accelerate the growth of its Fenics business and to buy back shares and/or units."While our insurance brokerage business provided less than 10% of BGC's total revenue over the trailing twelve-months, the $500M of cash that we expect to receive represents over 17% of BGC's fully diluted market capitalization," said BGCP Chairman and CEO Howard W. Lutnick."This transaction demonstrates our commitment to increase shareholder value and focus our interest on Fenics, which we believe represents the greatest opportunity for our company," he added.BGCP provides financial technology, market data, and analytics related to financial instruments and markets through its Fenics, BGC Trader, Capitalab, Lucera, and Fenics Market Data brands.

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BGC Partners sells insurance brokerage for $500M, to buy back shares