Interdealer broker TP ICAP PLC (LON:TCAP) today posted its final results for 2020, with the document offering an insight into the progress of the acquisition of Liquidnet.

As FX News Group has reported, TP ICAP plans to acquire the entire issued share capital of Liquidnet Holdings, Inc.

The total consideration for the acquisition is between $575 million and $700 million, comprising cash of $525 million, subject to customary adjustments, payable on completion and with deferred consideration of $50 million and contingent deferred consideration of up to $125 million.

Liquidnet’s electronic network incorporates extensive buyside trade workflow connectivity, including integrations with all major order management and execution management systems. TP ICAP intends to build on Liquidnet’s capabilities and connectivity, and expand its offering, particularly in respect of Dealer-2-Client (D2C) electronic trading in Credit and Rates. Furthermore, TP ICAP expects to leverage the data assets and analytics expertise of both organisations to drive non-transaction-related earnings.

In 2020, TP ICAP reported acquisition costs of £11 million related mainly to the proposed Liquidnet acquisition. For 2019, TP ICAP incurred £6 million principally for the Axiom, ClearCompress and LCM acquisitions.

Let’s note that, for 2020, the Group proposes a full-year dividend per share of 6p that equates to £47 million, a one-off 50% reduction to the prior year. This reduction is set to help fund the Liquidnet acquisition and minimise dilution of earnings on a per share basis.

“While this new strategy will drive the medium-term growth of TP ICAP, we took the decision to slow investment in 2020 adopting a prudent approach to managing through the crisis and prioritised our liquidity and capital buffers under stressed scenarios”, the company explained.