Interdealer broker TP ICAP is in advanced discussions to acquire share-trading platform operator Liquidnet for up to $700 million.
TP ICAP said in a news release Tuesday that the deal includes a $550 million upfront payment, deferred non-contingent payment of $50 million and up to $100 million, should certain performance goals be met.
Liquidnet is a block-trading platform for institutional investors. It specializes in equities but also has a fixed-income offering as well as an investment analytics division. It has more than 1,000 money management and hedge fund clients that manage a total $33 trillion in equity and fixed income.
TP ICAP said the potential deal offers further growth opportunities into credit and rates markets trading. Liquidnet would stand on its own within the TP ICAP structure should the deal go ahead, a spokesman for TP ICAP said. There would be no change to how buy-side clients are treated if and when the acquisition happens, he added.
The deal is subject to approval by TP ICAP shareholders and other conditions.
TP ICAP has previously made clear a strategy to diversify into new revenues streams, the spokesman said. Part of that has been to build up its buy-side agency execution business, Coex Partners, which it acquired in 2017.
Spokesmen for Liquidnet could not immediately be reached for comment.