TP ICAP’s acquisition of Liquidnet secures approval at general meeting
Interdealer broker TP ICAP PLC (LON:TCAP) has reported the outcome of the general meeting held earlier on Monday, February 1, 2021.
The resolution on the proposed acquisition of Liquidnet was passed, as 83.33% of the votes were in favor of the proposal.
TP ICAP plans to acquire the entire issued share capital of Liquidnet Holdings, Inc. for a total consideration of between US$575 million and US$700 million, comprising cash consideration of US$525 million payable on completion of the acquisition, non-contingent deferred consideration of US$50 million and contingent consideration of up to US$125 million.
The deal provides TP ICAP with substantial electronic trading and workflow connectivity to the buyside. Liquidnet’s global integrated buyside network ranks amongst the largest electronic trading communities in the world, comprising over 1,000 institutional asset management clients. In addition, it integrates with all major order/execution management systems.
Further, the acquisition diversifies TP ICAP’s asset class exposure. Liquidnet’s low-touch buyside-focused cash Equities model delivers expertise across block (or dark) and lit markets and is complementary to TP ICAP’s existing high touch inter-dealer oriented Equities activity, and the Enlarged Group intends to continue to invest in strengthening and growing the Liquidnet business.
The deal is also set to lead to expansion of Liquidnet’s electronic Credit trading offering to the D2C segment of the market. In addition, the deal will see the introduction of a D2C electronic trading offering for the Rates market.