With a stated desire to “dominate the next evolution of the energy markets,” GFI Group Inc. earlier this month agreed to purchase Amerex Energy’s North American gas and power brokerage operations and assets for $86 million. New York-based GFI Group said the deal would help it become one of the largest and fastest growing energy businesses in North America.

The Amerex entities involved in the transaction — which include the company’s brokerage operations in Sugar Land, TX — had annual revenues of more than $46 million in 2005 and exceeded $30 million in revenues in the first six months of 2006. GFI expects the acquisition of the Amerex operations and assets, which have been consistently profitable, to be immediately accretive to its earnings per share. The deal is expected to close in October.

Founded in 1978, Amerex’s has a significant market share in most of the energy markets and products in which it provides brokerage services and an “excellent reputation” with first-tier counterparties in the North American markets, especially traditional energy industry players, GFI said.

The Amerex operations to be acquired have more than 110 employees, including more than 70 brokerage personnel focused on 10 energy product markets. Included in the transaction are Amerex brokerage operations covering the following products: natural gas basis swaps; fixed price, index and swing gas swaps; physical and financial gas options; gas EFPs and both long and short-term gas forwards; power products involving all major U.S. physical and financial power market hubs, including East Coast long- and short-term power and West Coast long- and short-term power; emissions products, including long- and short-term emissions forwards; and services for commercial energy customers.

“We are acquiring the premier independent broker of OTC energy products remaining in North America, with a well-earned reputation for quality service, strong management and product innovation in the electric power, natural gas and emissions markets,” said Michael Gooch, GFI’s CEO. “This represents a further step in our strategy to broaden our presence in attractive OTC energy markets and complements our addition of oil and petroleum broker Starsupply last year and our other leading energy desks, including freight derivatives.”

GFI Group is a broker specializing in OTC derivatives products and related securities. The company also provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. Founded in 1987, GFI employs more than 1,200 people with additional offices in Englewood, (NJ), London, Paris, Hong Kong, Tokyo, Singapore and Sydney.

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