Acquiring a minority stake from the firm, NY-based equity investor JC Flowers agreed to pay $300 million for a 30% stake in the LMAX group. The company valuation after the investment goes up to $1 billion. After the transaction, David Mercer will continue to lead the company.
JC Flowers and LMAX Group will partner to accelerate the Company’s next phase of growth and innovation, and together see the potential for greater penetration in the FX and cryptocurrency markets globally, particularly in the U.S. and Asia.
Statements from their CEO
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.”
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Chris Flowers, Managing Director and CEO, J.C. Flowers & Co., said: “LMAX Group is an exciting and well-respected company with a leading position in a market with great potential, making it a highly compelling opportunity for our Firm. The LMAX Group exchange infrastructure offers efficiency and transparency, both of which are in high demand by the growing numbers of institutional participants in foreign exchange and cryptocurrency trading. David and his management team have driven considerable international growth in recent years, and we look forward to supporting them as they continue to expand their support of the world’s top institutional market actors.”
