LMAX Group sells 30% stake to J.C. Flowers & Co in major deal

Karthik Subramanian

LMAX Group, a leading operator of trading for institutions and retail venues for FX and crypto, has announced that it has sold a 30% stake in the company to J.C. Flowers & Co, an investment company that focuses on the financial services industry.

The deal is for a cash consideration of $300 million and this values the company at $1 billion. The new funds would be used for the growth and expansion of the services of LMAX with a particular focus on the US and Asia.

Commenting on the transaction, David Mercer, CEO, LMAX Group, said: “This is a significant milestone in the evolution of LMAX Group that vindicates our industry-leading business model and the role we have to play in the foreign exchange and cryptocurrency markets of the future. Not only have we identified a like-minded partner in J.C. Flowers who understands global capital markets and brings valuable connectivity to strengthen LMAX Group’s presence in North America and Asia, but one that shares our vision of building the Company into the pre-eminent global FX and cryptocurrency exchange. I’m excited about the many opportunities that lie ahead for LMAX Group and my fantastic group of colleagues.”

The company said that David would continue to lead the company as he still owns a substantial stake in the company along with the existing management team and J.C. Flowers. This was a secondary share sale by the employees of LMAX.

The company runs 5 exchanges globally and is a leading provider of FX and crypto trading liquidity and services for institutions. It has built a leading FX exchange over the years and in 2018, it launched one of the largest crypto exchanges for institutions which now serves over 500 firms, and it is the second-biggest bitcoin exchange globally.

The company continues to innovate and upgrade in the DeFi space as it recently joined the Solana-based Pyth network, which is a decentralized financial market data distribution network. The company already has clients in over 100 countries with strong infrastructure in London, New York, and Tokyo which enables it to provide services across the globe and this complements its strategy for global growth. In recent times, it has been specifically focussing on growth in Asia with an exchange in Tokyo and a sales hub in Hong Kong. It is expected that this infusion of funds through the stake sell would help it to push its services to new frontiers globally.

Read this next

Digital Assets

As SPAC bubble bursts, Circle terminates its $9 billion merger with Concord

USDC stablecoin issuer, Circle has terminated its planned $9 billion SPAC merger with publicly traded blank-check company Concord Acquisition Corp.

Institutional FX

Integral reports lowest FX volume in two years

Foreign exchange trading volumes dropped in November across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity.

Technology

CDEX: Avelacom announces connectivity to Cboe Europe Derivatives

“We anticipate that many of our customers from Asia will be particularly interested in getting exposure to pan-European products via just one venue, which CEDX offers.”

Retail FX

BUX acquires Spanish Ninety Nine’s retail brokerage unit

“Thanks to this acquisition, Ninety Nine users will have access to a wide range of services provided by BUX, such as investing in Spanish, European and US stocks, ETFs, cryptocurrencies, fractional investing and the BUX Savings Plan.”

Digital Assets

SEBA and HashKey partner to expand crypto in Hong Kong and Switzerland

SEBA Bank AG has announced a new strategic partnership with HashKey Digital Asset Group as part of both firm’s expansion efforts in Hong Kong SAR. 

Executive Moves

Broadridge appoints Martin Koopman as Chief Product Officer

“Martin has a proven record of driving product innovation both at Broadridge and at previous companies. His vision and proven ability to execute will be invaluable as we become the foremost SaaS provider to the financial services industry.”

Digital Assets

DAM rolls out Moonwalkers v1 testnet ahead of support for yield-generating collateral

“We want to champion innovation by making it easier to securely direct stablecoin liquidity away from Ethereum towards newer networks without the constant vulnerabilities posed by bridges. d20 will help accelerate the adoption flywheel of emerging networks, and this is our first step towards making our omnichain promise a reality.”

Institutional FX

FIA EXPO: ICE’s Brian Norris talks ESG investment, carbon credits and market data

The FIA Futures & Options Expo, now in its 38th year, convened the listed derivatives dealers, thought industry leaders and other stakeholders for two days of networking.

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

<