TP ICAP acquires algorithm-based compression services provider ClearCompress

Maria Nikolova

The consideration for the acquisition is £750,000 in cash to be paid over two years, and performance-related payments for the six years starting September 1, 2019.

TP ICAP PLC (LON:TCAP) has earlier today announced the acquisition of ClearCompress Limited, a provider of innovative, algorithm-based, light-touch compression services in cleared and uncleared derivatives.

The two companies commenced their collaboration in 2017. Back then, ClearCompress contributed development and algorithm expertise and TP ICAP contributed access to clients and support infrastructure. The parties deepened their relationship in March 2019 when TP ICAP agreed to provide funding of £500,000 and the benefit of its regulated status to ClearCompress. The parties have now agreed to formalise their relationship with the acquisition of ClearCompress by TP ICAP.

The key team members of ClearCompress, including CEO David Hill, will remain with the business.

The sellers of ClearCompress are the founders, early-stage investors and management team. The consideration for the acquisition is £750,000 in cash to be paid over two years, and performance-related payments for the six years starting September 1, 2019 until August 31, 2025 based on the revenues of the business, payable annually in cash or shares at the discretion of TP ICAP.

The gross assets of ClearCompress at end-January 2019 amounted to £88,152 and the business reported a loss before tax of £346,606 for the year ended January 31, 2019.

Nicolas Breteau, CEO of TP ICAP, said, “The acquisition of ClearCompress is in line with our strategy to broaden our customer service offering. The compression runs we have conducted demonstrate excellent outcomes for our clients. We are delighted to welcome this innovative company with its expertise in algo-driven capital optimisation solutions to our group and we are excited to move forward and grow the business together.”

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