(Alliance News) - TP ICAP PLC on Tuesday said it intends to buy European brokerage group Louis Capital Markets and MidCap Partners for USD21 million in cash.
TP ICAP said it will also pay a deferred non-contingent consideration of USD6 million over two years. There is also a further USD17 million of deferred contingent consideration that may be payable dependent upon the performance of the business over three to five years.
Finally, there is potential additional consideration via a profit share dependent upon the performance of the business.
The FTSE 250-listed interdealer broker said it expects to complete the transaction in the first quarter of 2020, subject to some customary commercial conditions and regulatory approvals both in the UK and US.
Louis Capital operates in London and Paris, with other offices in New York, Hong Kong and Tel Aviv.
For 2018, Louis Capital generated a pretax profit of USD4.3 million and had gross assets of USD35.4 million.
"Louis Capital's strong brand and breadth of equity, equity derivatives and fixed income products complement our existing offering and strengthen TP ICAP's position in Continental Europe," said TP ICAP Chief Executive Nicolas Breteau.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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TP ICAP (TCAP)