Business
Proposed acquisition of Louis Capital
Proposed acquisition of Louis Capital.
About this update from Tp Icap Group Plc
[{"type":"text","content":"\n \nRNS Number : 9044X TP ICAP PLC 23 December 2019 \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION \nFOR IMMEDIATE RELEASE\n\nTP ICAP PLC\n \n23 December 2019\n \nTP ICAP plc announces the proposed acquisition of Louis Capital Markets and MidCap Partners\n \nTP ICAP plc (\"TP ICAP\") today announces the proposed acquisition of Louis Capital Markets and MidCap Partners (collectively \"Louis Capital\"), a private brokerage group specialising in equities and fixed income, primarily based in Europe.\n \nLouis Capital operates in London and Paris, with other offices in New York, Hong Kong and Tel Aviv. The group has 77 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 \nCompletion of the transaction (\"Completion\") is expected to take place in the first quarter of 2020 and is subject to customary completion deliverables and certain other customary commercial conditions as well as regulatory approval by the Financial Conduct Authority (\"FCA\") in the UK, the Financial Industry Regulatory Authority (\"FINRA\") in the U.S. and other relevant regulators. . \n \nTransaction details:\n \nThe initial consideration for the acquisition is $21 million in cash payable at Completion (such amount being subject to adjustment based on the level of regulatory capital, working capital and net cash in Louis Capital at completion) with deferred non-contingent consideration of $6 million that will be paid 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 \nFor the year ended 31 December 2018, Louis Capital made profit before tax of $4.3m. At 31 December 2018, it had gross assets of $35.4m.\n \nNicolas Breteau, CEO of TP ICAP, said, \"Louis Capi...