London-based broker TP ICAP announced that it has agreed to acquire trading venue Liquidnet Holdings, Inc.
The terms of the deal were announced through the London Stock Exchange for a total consideration of between US$575 million and US$700 million.
TP ICAP will launch a rights issue to raise $425 million to fund the acquisition. The broker will draw down on existing debt facilities for $100 and $50 million will be paid three years from the completion.
Depending on other payouts and performance targets, the price could reach $700 million.
Liquidnet’s acquisition will create a UK-headquartered, global financial markets infrastructure provider. It accelerates TP ICAP’s strategy and its three main pillars – electronification, aggregation and diversification and creates an opportunity for the broker to diversify its business mix.
Acquiring Liquidnet is a unique opportunity to transform TP ICAP’s growth prospects by materially accelerating the execution of our electronification, aggregation, and diversification strategy.
Liquidnet is a cash Equities dark/block trading global specialist, with a growing Fixed Income presence. The trading venue provides its buyside clients who exceed 1,000 and collectively manage $33 trillion in equity and fixed income assets, with to access 45 markets worldwide.
Brian Conroy, CEO, Liquidnet, said:
Brian Conroy Source: LinkedIn
We are energised by the opportunity of combining the strengths of TP ICAP and Liquidnet. This transaction underscores the relevance and future prospects of a business we started two decades ago, and which has grown to become not only a leader in global institutional equities block trading, but also one of the world’s premier buyside-focused electronic networks.
Together, we will be able to better serve our customers, whilst simultaneously delivering innovative market solutions to a broader range of institutions, across a wider range of asset classes and market segments. TP ICAP’s customer base, unique data assets and global leadership across a range of product markets are highly complementary to Liquidnet and are expected to enable the acceleration of our growth plans across Equities, Fixed Income and Investment Analytics.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
