TP ICAP agrees to buy Liquidnet in $575m deal

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.

Acquisition, merger

TP ICAP CEO, Nicolas Breteau commented:

Nicolas Breteau, TP ICAP
Nicolas Breteau

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, Liquidnet
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.

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TP ICAP agrees to buy Liquidnet in $575m deal

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