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.

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