Business
Proposed Acquisition of Liquidnet
Proposed Acquisition of Liquidnet.
About this update from Tp Icap Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6191B\n TP ICAP PLC\n 09 October 2020\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR WITHIN THE UNITED STATES, CANADA, SOUTH AFRICA, JAPAN OR AUSTRALIA.\n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n FOR IMMEDIATE RELEASE\n \n \n 9 October 2020\n \n \n \n \n \n TP ICAP PLC \n \n \n PROPOSED ACQUISITION OF LIQUIDNET\n \n \n \n \n \n · \n \n Accelerates delivery of the three pillars of TP ICAP's strategy - electronification, aggregation and diversification\n \n \n \n \n \n \n · \n \n Transformational opportunity for TP ICAP to diversify its business mix, accelerate upward shift of revenue growth profile and improve underlying operating margin \n \n \n \n \n \n \n · \n \n Leverages Liquidnet's trading platform and network of over 1,000 buyside clients\n \n \n \n 1\n \n \n \n and TP ICAP's product market expertise and dealer relationships/connectivity to create a new global challenger in electronic Credit and Rates Fixed Income trading\n \n \n \n \n \n \n · \n \n TP ICAP intends to continue to invest in Liquidnet's leading buyside-focused dark/block cash Equities platform, and to preserve its trusted neutral position as an unconflicted agency broker\n \n \n \n \n \n \n · \n \n Rights issue to raise proceeds of approximately US$425 million fully underwritten on a standby basis\n \n \n \n \n \n \n Following the announcement made on 29 September 2020, TP ICAP plc (\"TP ICAP\" or the \"Company\" and together with its subsidiaries, the \"Group\") confirms that it has agreed definitive terms to acquire the entire issued share capital of Liquidnet Holdings, Inc. (\"Liquidnet\" and, together with its subsidiaries and the Group, the \"Enlarged Group\") for a total consideration of between US$575 million and US$700 million, comprising cash consideration of US$525 million (subject to customary adjustments) payable on completion of the Acquisition (\"Completion\"), non-contingent deferred consideration of US$50 million and contingent consideration of up to US$125 million (the \"Acquisition\"). The Acquisition is expected to complete in Q1 2021.\n \n \n The Acquisition creates a UK-headquartered, global financial markets infrastructure provider. The Enlarged Group will be well-positioned to...