J.C. Flowers & Co buys 30% stake in LMAX Group

LMAX Group has signed an agreement to sell a 30% stake in the company to J.C. Flowers & Co. LLC. The institutional execution venues operator for FX and crypto currency trading revealed today that the companies have a greed on a cash consideration of $300 million valuing LMAX Group at $1 billion.

LMAX Group and private investment firm J.C. Flowers will team up to accelerate the company’s next phase of growth and innovation, look for penetration in the FX and crypto currency markets globally, particularly in the US and Asia. After the deal is complete, David Mercer, CEO, will continue to lead the LMAX having retained a substantial stake alongside his management team and J.C. Flowers.

LMAX Group

David Mercer, CEO, LMAX Group, commented:

David Mercer, LMAX

David Mercer
Source: LinkedIn

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 crypto currency 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 crypto currency exchange. I’m excited about the many opportunities that lie ahead for LMAX Group and my fantastic group of colleagues.

The London-based LMAX Group operates five exchanges globally, it has matching engine infrastructure in London, New York and Tokyo with clients in more than 100 countries. In the last decade, Group has built an institutional FX exchange and in 2018 launched LMAX Digital – an institutional spot crypto currency exchange, which serves more than 500 institutional clients.

Chris Flowers, Managing Director and CEO, J.C. Flowers & Co., said:

Chris Flowers, J.C. Flowers

Chris Flowers
Source: LinkedIn

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 crypto currency 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.” Morgan Stanley & Co. International PLC is serving as financial advisor and Squire Patton Boggs (UK) LLP is acting as legal counsel to LMAX Group. Jefferies LLC is serving as financial advisor and Sullivan & Cromwell LLP is acting as legal counsel to J.C. Flowers & Co.

Earlier this month, LMAX Group appointed Paul Ainsworth to the newly created position of Head of Institutional Sales for Americas.

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