LMAX Group, a London-based leading independent operator of institutional Execution venues for FX and cryptocurrency trading, announced today that it has signed a definitive agreement to sell a 30% stake in the company to the US-based leading private investment firm, J.C. Flowers for a total cash consideration of $300 million. The latest announcement values LMAX Group at approximately $1 billion.
According to an official announcement, the partnership between the two companies will accelerate LMAX Group’s growth and innovation. LMAX mentioned that the collaboration will facilitate its expansion in the foreign Exchange (FX) and cryptocurrency market globally, particularly in the growing markets of Asia and the US.
The mentioned $300 million deal will be subject to regulatory approvals. The Group added that David Mercer, current CEO at LMAX Group, will continue to lead the company. “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,” Mercer said.
“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,” he added.
LMAX Group
LMAX has seen a significant surge in institutional demand for crypto products in the last few months. In June 2021, the Group joined Pyth Network to enter the DeFi market. “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,” Chris Flowers, Managing Director and CEO at J.C. Flowers & Co., commented.
Morgan Stanley is serving as a financial advisor and Squire Patton Boggs (UK) LLP is acting as a legal counsel for LMAX Group.
