16th Sep 2019 17:35
(Alliance News) - TP ICAP PLC said Monday it has acquired cleared and uncleared derivative compression service ClearCompress.
TP ICAP will pay GBP750,000 in cash over two years. There will also be performance-related payments made annually over the six years from 2019 to 2025. The performance-related payments can be in cash or TP ICAP shares.
The interdealer broker said ClearCompress will assist clients achieve cost efficiencies and capital reduction.
TP ICAP and ClearCompress have been working together since 2017, the company said.
"At that time, ClearCompress contributed development and algorithm expertise and TP ICAP contributed access to clients and support infrastructure. The parties deepened their relationship in March 2019 when TP ICAP agreed to provide funding of GBP500,000 and the benefit of its regulated status to ClearCompress," the interdealer broker added.
TP ICAP Chief Executive Nicolas Breteau said: "The acquisition of ClearCompress is in line with our strategy to broaden our customer service offering. The compression runs we have conducted demonstrate excellent outcomes for our clients. We are delighted to welcome this innovative company with its expertise in algo-driven capital optimisation solutions to our group and we are excited to move forward and grow the business together."
ClearCompress reported a pretax loss of GBP346,606 in the year ended January 31.
Shares in TP ICAP closed 0.9% higher in London on Monday at 342.40 pence each.
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