London fintech to be acquired in $700m deal to create global infrastructure provider

A London financial technology company has confirmed that it has reached an agreement to be acquired in a multi-million pound deal.

Liquidnet, which provides technology solutions to market traders, is set to be acquired by professional intermediary TP ICAP for between £444m to £540m ($575 to $700m).

The deal, which is expected to complete in the first quarter of 2021, will create a UK-headquartered global financial markets infrastructure provider.

Nicolas Breteau, CEO of TP ICAP, commented: “Acquiring Liquidnet is a unique opportunity to transform TP ICAP’s growth prospects by materially accelerating the execution of our electronification, aggregation and diversification strategy.

“Liquidnet is a premier, technology-driven, global electronic trading network with more than 1,000 buyside clients.

“It has a strong and trusted brand, which we will both retain and develop. We will continue to invest in, and grow, Liquidnet’s leading dark/block Equities business, and maintain its position as a trusted and unconflicted agency broker.

“We intend to build on Liquidnet’s capabilities and connectivity, and expand its offering, particularly in respect of D2C electronic trading in credit and rates. Further, we expect to leverage the data assets and analytics expertise of both organisations to drive non-transaction-related earnings.”

Brian Conroy, CEO of Liquidnet, added: “We are energised by the opportunity of combining the strengths of TP ICAP and Liquidnet.

“This transaction underscores the relevance and future prospects of a business we started two decades ago, and which has grown to become not only a leader in global institutional equities block trading, but also one of the world’s premier buyside-focused electronic networks.

“Together, we will be able to better serve our customers, whilst simultaneously delivering innovative market solutions to a broader range of institutions, across a wider range of asset classes and market segments.”