Goldman buys stake in CMC

Source: Exec Digital USA

Date :11/22/2007 12:10:40 PM

Goldman Sachs has reportedly bought a ten percent stake in spread-betting firm CMC Markets, the UK group said on Thursday.

CMC did not disclose a value for the deal, but it is understood that the investment bank has paid £140 million for the ten percent stake, valuing the entire group at £1.4 billion.

Jan Boomaars, a managing director at Goldman Sachs, commented: “We are looking forward to working with Peter and CMC Markets in the coming years to capture the significant opportunities in the global retail derivatives market.”

Strategic partner

CMC said it hopes the investment will help fund its growth and that its technology could be used by Goldman Sachs. It also hopes Goldman's backing could help open doors to new markets.

“Having Goldman Sachs as a global strategic partner providing operational cooperation will be a major advantage for us going forward,” said Executive Chairman Peter Crudas. "They have fantastic corporate clients and we have fantastic technology."

Mr Cruddas and his wife owned 92 percent of the business before the sale.

November 22, 2007