A leading broker of financial products, BGC Partners, has agreed to purchase the Midtown-based commercial services firm Newmark, which in the United States is known as Newmark Knight Frank, the companies said in a statement. The price was not released.
The purchase involves about 425 brokers, and includes Newmark’s New York business and the company’s majority interest in more than 25 offices around the country as well as other affiliates, the statement said.
BGC, based in Midtown, is controlled by Howard Lutnick, chairman and CEO, who is also chairman and CEO of financial services firm Cantor Fitzgerald. BGC, whose shares are publicly traded on NASDAQ, had revenues of about $1.3 billion last year.
Newmark has been affiliated with the London-based real estate firm Knight Frank since 2006. Newmark, which is a private company, reported revenues combined with Knight Frank of $811 million, but Newmark’s share is estimated to be less than half of that.
It is expected that management of Newmark will become partners in BGC, and Barry Gosin, Newmark’s CEO, will remain in that position, reporting to Lutnick. Gosin was a board member of eSpeed, a predecessor of BGC.
“Both BGC and Newmark count the world’s leading banks and investment banks as clients, and we see exciting opportunities for cross-marketing, given the outstanding suite of transactional and consultative services Newmark offers the corporate and institutional market,” Lutnick said in a statement.
A spokesperson for Newmark said the company had no comment beyond BGC’s statement. Gosin, other executives and brokers were at a company retreat until next week, and were unavailable to discuss the proposed sale, several people at the firm said. TRD