TP ICAP PLC - London-headquartered interdealer broker - Shareholders approve deal to acquire New York-based electronic trading network Liquidnet Holdings Inc.
Liquidnet is said to be a specialist in equities dark trading, with a growing presence in fixed income. For the year to the end of June, Liquidnet generated adjusted earnings before interest, tax, depreciation and amortisation of USD64 million, on revenue of USD339 million.
TP ICAP has launched an underwritten right issue to raise GBP315 million, which will go towards funding the USD575 million acquisition of Liquidnet, first announced in October.
The rights issue represents 40% of TP ICAP's existing share capital and 29% of its enlarged total.
The Liquidnet deal comprises an upfront consideration of USD525 million on the completion of the deal, and a deferred consideration of USD50 million. TC ICAP will pay up to a further USD125 million depending on the performance of the Liquidnet Equities business over the three-year period from the start of 2021.
Current stock price: 226.00 pence
Year-to-date change: down 5.1%
By Paul McGowan; paulmcgowan@alliancenews.com
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TP ICAP (TCAP)