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 time, it was anticipated that it will close anywhere between $575 million and $700 million.

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 Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE), TP ICAP detailed that the acquisition will result in the creation of a diversified global markets infrastructure and data solutions provider.

“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 Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of our strategy.”

Focus on 'Swift Integration'

The group company is now optimistic about benefitting 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.