Business
Acquisition of Louis Capital
Acquisition of Louis Capital.
About this update from Tp Icap Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 8062U\n TP ICAP PLC\n 31 July 2020\n \n \n \n \n \n TP ICAP PLC\n \n \n \n \n \n 31 July 2020\n \n \n \n \n \n TP ICAP plc announces the acquisition of \n \n Louis Capital Markets and MidCap Partners\n \n \n \n \n \n \n Further to its announcement on 23 December 2019, TP ICAP plc (\n \"\n TP ICAP\n \"\n ) announces that it has today completed the acquisition of \n Louis Capital Markets and MidCap Partners (collectively \"Louis Capital\"), a private brokerage group specialising in equities and fixed income, primarily based\n in Europe.\n \n \n \n \n \n Louis Capital operates in London and Paris, with other offices in New York and Hong Kong. The group has 80 front-office employees and specialises in cash equities and equity derivatives, fixed income and small cap advisory services. Michael Benhamou and Patrice Cohen who founded and led Louis Capital will remain as senior management.\n \n \n \n \n \n Louis Capital will become part of TP ICAP's Global Broking division which provides high value inter-dealer broking services to top-tier banks in long-term established relationships. The acquisition builds on the successful acquisition track record of TP ICAP and will complement and strengthen the Group's offering in Continental Europe. \n \n \n \n \n \n Transaction details:\n \n \n \n \n \n The initial consideration paid for the acquisition was $21 million in cash (which is subject to adjustment based on the level of regulatory capital, working capital and net cash in Louis Capital as at today's date) with deferred non-contingent consideration of $6 million payable over two years. There is a further $17 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. These subsequent payments will be satisfied through cash payments. TP ICAP expects the acquisition to be earnings accretive from the first year of acquisition on an underlying basis and from the second year on a reported basis.\n \n \n \n \n \n Nicolas Breteau, CEO of TP ICAP, said, \"The acquisition of Louis Capital demonstrates our growing appetite to complement our existing offering with high quality ...