TP Icap has paid $21 million in cash with a further $23 million in deferred non-contingent consideration, for European boutique inter-dealer broker Louis Capital Markets.
Louis Capital’s 80 front-office employees operate primarily out of London and Paris, with smaller offices in New York and Hong Kong. Michael Benhamou and Patrice Cohen who founded and led the firm will continue in senior management roles.
“The acquisition of Louis Capital demonstrates our growing appetite to complement our existing offering with high quality brands,” says Nicolas Breteau, CEO of TP Icap. “Louis Capital’s breadth of equity, equity derivatives and fixed income products will strengthen TP Icap’s position in continental Europe.”
Benhamou and Cohen, add, “Louis Capital is an excellent cultural fit with TP Icap Group. The deal also offers us real opportunities to benefit from the significant strengths TP Icap offers so that we can develop Louis Capital further, meeting more needs of more clients over time.”
TP Icap says it 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.