ICAP completes TriOptima acquisition

Inter-dealer broker ICAP has announced that it will acquire all the outstanding share capital of post-trade financial technology company TriOptima for an initial €109 million in cash.

ICAP originally invested in TriOptima when it was founded in 2001. It will now buy the remaining 61.78% of TriOptima's share capital. The initial cash payment will be followed by €12 million in respect of working capital, financed from ICAP's existing debt facilities.

Following the initial payment, there are two further potential payments based on revenue and profit targets for the period to 31 December 2012. These further payments can be made in cash, ICAP shares or a combination of the two at ICAP's discretion. The agreement is subject to regulatory approval in Sweden.

In 2009 TriOptima achieved profit before tax of almost €30 million. The company now has 102 employees and gross assets of €36.5 million. Its senior management and founders, including chief executive officer Brian Meese, will remain with the business and continue it within the ICAP group.

ICAP also announced that group revenue for the three months ended 31 December 2009 was slightly ahead of the same period last year and consistent with the performance for the nine months to December 2009. The company said regulatory uncertainty had affected the regular pattern of market activity, but it anticipated pre-tax profits to be between £295 million to £315 million for the financial year ending in March.