BGC Partners Inc., a brokerage company primarily servicing large financial institutions, closed its previously announced acquisition of all of the outstanding shares of Newmark & Company Real Estate Inc., a U.S. commercial real estate brokerage and advisory firm serving corporate and institutional clients, plus a controlling interest in its affiliated companies, encompassing approximately 425 brokers.
Newmark & Company Real Estate Inc. operates as Newmark Knight Frank in the United States and is associated with London-based Knight Frank. Headquartered in New York, Newmark has offices in over 40 key markets. Providing clients with a single source for every aspect of occupying or owning a property, Newmark offers a complete range of leasing and corporate advisory services, investment sales and financial services, consulting, project and development management, and property and facilities management.
The acquisition of Newmark is expected to be accretive to BGC. BGC will provide fourth quarter guidance that incorporates Newmark's business in BGC's third quarter financial results press release and conference call on Thursday, October 27, 2011.
The global partnership between Newmark and Knight Frank operates more than 240 offices in established and emerging property markets with 7,000 employees on five continents, including approximately 1,600 brokers and other employees throughout the U.S. BGC intends to aggressively drive Newmark's growth by attracting experienced brokers, investing in proprietary technology, and capitalizing on Newmark's extensive domestic relationships and international reach.
"This acquisition is a game changer," BGC Chairman & CEO Howard W. Lutnick said in a statement. “Newmark boasts an impressive domestic footprint, talented pool of brokers, and prominent client base with substantial opportunity for synergies with BGC. By applying BGC's proven and powerful model of investing in people and technology, we expect to capitalize on and extend our relationships with top-tier financial institutions, and introduce tools that will enable Newmark brokers to help their clients hedge against changes in real estate prices."
"Newmark has been one of the fastest growing real estate services firms in the commercial property markets," Newmark CEO Barry M. Gosin said in a statement. "Joining with BGC enables us to offer a unique value proposition for our clients and an extremely attractive professional opportunity for Newmark's brokers as we build out an extraordinary platform, continue to acquire top talent and expand into new markets and products. Given our commitment to providing world-class service to our clients and the best tools for our professionals, this is a unique moment in the commercial real estate industry as we align best-in-class technology with financial products and real estate."
Cantor Fitzgerald & Co., an affiliate of Cantor Fitzgerald, L.P., acted as a financial adviser to BGC in connection with this transaction.