Regulatory Story
Go to market news section View chart   Print

Proposed acquisition of Louis Capital

Released 07:00 24-Dec-2019

RNS Number : 9044X
23 December 2019





23 December 2019


TP ICAP plc announces the proposed acquisition of Louis Capital Markets and MidCap Partners


TP 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.


Louis 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.


Completion 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. .


Transaction details:


The 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.


For 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.


Nicolas Breteau, CEO of TP ICAP, said, "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 "


Michael Benhamou and Patrice Cohen, co-CEOs of Louis Capital said "We strongly believe that the Louis Capital business will be an excellent cultural fit to TP ICAP. We are committed to developing it further within the group"





Analysts and investors
Al Alevizakos
+44 (0) 203 933 3040


William Baldwin-Charles
+44 (0) 207 200 7124



TP ICAP brings together buyers and sellers in global financial, energy and commodities markets. It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology.


Market Abuse Regulation (EU No. 596/20140)

Upon the publication of this announcement via a Regulatory Information Service, the inside information contained in it will be considered to be in the public domain. Richard Cordeschi is the person responsible for the release of this announcement.


Forward looking statements

This document contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Group's actual future results may differ materially from the results expressed or implied in these forward-looking statements.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit

London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.


Proposed acquisition of Louis Capital - RNS