Tullet Prebon Ventures Deeper into Energy, Buys Broker MOAB Oil
- The target company has generated close to $23.7 million of revenues for 2014 as the U.K. listed brokerage decided to pay about $12.3 million
Looking to expand its presence in one of the most volatile markets for the past year, Tullet Prebon announced that it has acquired independent brokerage MOAB Oil. The firm has been actively engaged in the energy markets with gasoline, crude oil, ethanol, distillates, weather and power derivatives.
The acquisition cost $12.3 million (£7.8 million) plus an amount equal to the working capital of the business. The deal will be financed from the company's existing cash resources.
MOAB has been in business for over a decade with 23 brokers based in Connecticut. The target company generated revenues totaling $23.7 million (14.4 million) last year.
There is also a deferred contingent consideration totaling $14.3 million (£9.1 million), dependent upon the performance of the business over a five year period.
MOAB has long-established relationships with major oil companies, gasoline blenders, oil trading divisions of investment banks and smaller domestic trading firms. Utilizing proprietary models and the latest technology it provides its clients with insights on trends, evolving regulations and trading economics which affect their markets.
The CEO of Tullett Prebon, John Phizackerley, said, "The acquisition of MOAB is consistent with our strategic aim to build our global energy and commodities franchise. MOAB is an excellent fit with our existing crude oil and energy broking activities. It complements our recent acquisition of PVM and further establishes our leading position in the energy sector."
The President of MOAB, Kenneth Utting, added, "In Tullett Prebon, we have found an ideal partner for MOAB. Together we will be able to expand and enhance our valuable franchise, extend our reach geographically, reach more customers and provide an even better quality of input on Market Depth Market Depth Market Depth is a characteristic of a given market and its ability to handle large order sizes without materially affecting the price of the underlying asset or currency pair. Broad-based definitions of market depth characterize it as a function of liquidity and trading volume.In its most simplistic sense, market depth reflects a real-time list displaying the quantity to be sold versus unit price. This in turn is organized by price level and is reflective of real-time market activity. In theory, Market Depth is a characteristic of a given market and its ability to handle large order sizes without materially affecting the price of the underlying asset or currency pair. Broad-based definitions of market depth characterize it as a function of liquidity and trading volume.In its most simplistic sense, market depth reflects a real-time list displaying the quantity to be sold versus unit price. This in turn is organized by price level and is reflective of real-time market activity. In theory, Read this Term and colour and service in Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of oil trades."
Looking to expand its presence in one of the most volatile markets for the past year, Tullet Prebon announced that it has acquired independent brokerage MOAB Oil. The firm has been actively engaged in the energy markets with gasoline, crude oil, ethanol, distillates, weather and power derivatives.
The acquisition cost $12.3 million (£7.8 million) plus an amount equal to the working capital of the business. The deal will be financed from the company's existing cash resources.
MOAB has been in business for over a decade with 23 brokers based in Connecticut. The target company generated revenues totaling $23.7 million (14.4 million) last year.
There is also a deferred contingent consideration totaling $14.3 million (£9.1 million), dependent upon the performance of the business over a five year period.
MOAB has long-established relationships with major oil companies, gasoline blenders, oil trading divisions of investment banks and smaller domestic trading firms. Utilizing proprietary models and the latest technology it provides its clients with insights on trends, evolving regulations and trading economics which affect their markets.
The CEO of Tullett Prebon, John Phizackerley, said, "The acquisition of MOAB is consistent with our strategic aim to build our global energy and commodities franchise. MOAB is an excellent fit with our existing crude oil and energy broking activities. It complements our recent acquisition of PVM and further establishes our leading position in the energy sector."
The President of MOAB, Kenneth Utting, added, "In Tullett Prebon, we have found an ideal partner for MOAB. Together we will be able to expand and enhance our valuable franchise, extend our reach geographically, reach more customers and provide an even better quality of input on Market Depth Market Depth Market Depth is a characteristic of a given market and its ability to handle large order sizes without materially affecting the price of the underlying asset or currency pair. Broad-based definitions of market depth characterize it as a function of liquidity and trading volume.In its most simplistic sense, market depth reflects a real-time list displaying the quantity to be sold versus unit price. This in turn is organized by price level and is reflective of real-time market activity. In theory, Market Depth is a characteristic of a given market and its ability to handle large order sizes without materially affecting the price of the underlying asset or currency pair. Broad-based definitions of market depth characterize it as a function of liquidity and trading volume.In its most simplistic sense, market depth reflects a real-time list displaying the quantity to be sold versus unit price. This in turn is organized by price level and is reflective of real-time market activity. In theory, Read this Term and colour and service in Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of oil trades."