TP ICAP Completes Acquisition of Dark Pool Operator Liquidnet

Interdealer broker, TP ICAP plc (LON: TCAP) announced on Wednesday the completion of the acquisition of private trading operator Liquidnet and its subsidiaries.

The deal was closed months after the two companies signed definitive terms for the acquisition. Though TP ICAP did not mention the exact financials of the deal at the moment, it was anticipated that it will close anywhere between $575 million and $700 million.

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The London-listed firm recently raised £315 million through rights issues to finance the acquisition deal.

In the latest filing with the London Stock Exchange (LSE), TP ICAP detailed that the acquisition will result in the creation of a diversified global markets infrastructure and data solutions provider.

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“Completing the acquisition of Liquidnet is an important milestone for TP ICAP,” Nicolas Breteau, chief executive at TP ICAP, said in a statement. “Bringing together two highly complementary businesses transforms our growth prospects by materially accelerating the execution of our strategy.” 

Focus on ‘Swift Integration’

The group company is now optimistic to benefit from the surge in the buy-side demand with its services of trade execution for multiple asset classes.

“Our focus now is on the swift integration of Liquidnet and realizing the compelling opportunities to drive higher revenues and returns to shareholders,” Breteau added.

Meanwhile, the business of the interdealer broker was heavily impacted by the effects of the pandemic and also the exit of Britain from the EU bloc. To continue its European operations, TP ICAP restructured its business by establishing a holding company in Jersey and forming a French subsidiary.

Its performance in 2020 remained dull as both revenue and operating profits witnessed a yearly decline. The company ended the year with a pre-tax profit of £223 million.

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