TP Icap PLC acquired ClearCompress Ltd. for a consideration of £750,000 in cash and performance-related payments.
The British broker said it purchased ClearCompress from its founders, early-stage investors and management team. TP Icap CEO Nicolas Breteau said the deal is in line with the firm's strategy to expand into innovative compression services.
TP Icap will pay the consideration over two years, while the performance-related payments will be made over six years beginning Sept. 1, 2019, until Aug. 31, 2025, based on the revenues of ClearCompress, payable annually in cash or shares at TP Icap's discretion, according to a Sept. 16 statement.
The two companies started collaborating in 2017 and broadened their partnership in March when TP Icap agreed to provide £500,000 of funding and the benefit of its regulated status to ClearCompress. Under the deal, ClearCompress CEO David Hill and other key team members will remain with the business.
ClearCompress, which provides algorithm-based, light-touch compression services in cleared and uncleared derivatives aimed to help customers achieving cost efficiencies and capital reduction, reported a pretax loss of £346,606 for the fiscal year ended Jan. 31. The company's gross assets stood at £88,152 as of January-end.
