J.C. Flowers Agrees to Acquire 30% Stake in Crypto Exchange LMAX at $1 Billion Valuation

UTC by Bhushan Akolkar · 3 min read
J.C. Flowers Agrees to Acquire 30% Stake in Crypto Exchange LMAX at $1 Billion Valuation
Photo: LMAX Group

The 30% stake acquisition in LMAX Group will help investment giant J.C. Flowers to expand its institutional services as well as step into overseas markets like Asia.

On Thursday, July 15, investment group J.C. Flowers announced the acquisition of a 30% stake in crypto trading platform LMAX. The LMAX Group specializes in offering crypto and FX trading to institutional clients.

As a result of the deal, J.C. Flowers shall be investing $300 million at $1 billion valuations. However, the transaction is still subject to regulatory approval. The stake acquisition will also allow the investment group to grow its foreign exchange and crypto businesses. Besides, this move will also help J.C. Flowers to expand its operations in Asia apart from the U.S.

The deal happens just at the time when institutional participation in the crypto space is on the rise. Despite the increased volatility in the crypto space, institutional interest is on the rise. As a result, even traditional banking players like Morgan Stanley and Goldman Sachs are working on offering crypto services to their clients. Speaking about the deal, Chris Flowers, Managing Director and CEO, J.C. Flowers & Co., said:

“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.”

The Growth of LMAX Group that Attracts J.C. Flowers

LMAX is among the world’s biggest crypto trading platforms. Headquartered in London, LMAX carries its operations worldwide. It has clients in more than 100 countries and carried out $1.2 billion in daily trading volumes in May.

Over the last decade, LMAX Group has expanded its services catering to institutional clients. Back in 2018, it also formed another subsidiary LMAX Digital which is now a leading institutional spot crypto exchange. The platform now serves 500 institutional clients being the second biggest Bitcoin trading platform in the world. Commenting on the transaction, David Mercer, CEO, LMAX Group, said:

“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.”

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