TP ICAP is announcing a new acquisition deal this morning. The company is taking over independent agency broker firm Coex Partners Limited for at least £7.1 million ($9.5 million). With offices in London, Paris and New York, the company has been growing rapidly since its creation in 2014.
Focusing on listed derivatives and OTC foreign exchange provision to hedge funds, asset managers, and other buy-side clients, the firm has a team of 55 brokers. Coex Partners Limited is sold by the company’s managers John Ruskin and Alex Gerskowitch. They are the founders of the firm and will continue in their roles to build up the unit.
The acquisition negotiations between TP ICAP and Coex were started 2016 when the brokers started working together. The major inter-dealer broker will integrate Coex into its institutional services division, that is focused on high-value services, including pre-trade information, market intelligence and intermediation to its clients.
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Coex Revenues Until June Total £11m
TP ICAP will make an initial payment of £7.1 million. Additional payments are contingent on the performance of the target company over the next 4 years. As part of the initial consideration, TP ICAP will settle the existing shareholder loans of Coex. The additional payments will be transacted in through the issue of new ordinary shares of the inter-dealer broker or via cash, at the discretion of the firm.
Coex reported profits before tax totaling £2.1 million ($2.8 million) for the year that ended on December 31st, 2016. At the end of the period, it had gross assets of £6.5 million. Revenues for the first six months of 2017 totaled £11 million ($14.8 million).
Coex entered into an appointed representative agreement with TP ICAP in June 2016. Since that date, its revenues have been included in the consolidated revenues of the inter-dealer broker.
Coex FX Business
The foreign exchange business of Coex delivers to clients anonymous execution in Spot, forwards and FX options. Focusing on G10 and EM currencies, the company is accessing liquidity through traditional and non-traditional channels. Trades are cleared through multiple top-tier FX prime broker arrangements.