The acquisition, first announced in October 2007, marks a further expansion for ICAP into the post trade processing business, following the very successful investments in TriOptima in 2001 and Reset in 2006. Post trade services is an area where technology innovation is creating exciting new business opportunities for ICAP and is an increasingly competitive necessity in growing market share in the interdealer broking business.
Traiana’s business model is driven by the growth in the number of trades as each trade triggers multiple post trade events and Traiana charges for each event. Traiana has been very successful in operating as a neutral platform in the foreign exchange market and enjoys a great partnership with all the market participants, including ICAP’s EBS system. Traiana is committed to continuing to work closely with them all to support their businesses.
The consideration for 100% of the share capital of Traiana is $238 million payable in cash and $9 million of ICAP shares that will vest within four years. The acquisition of Traiana will be initially financed using a new acquisition facility on similar terms to ICAP’s existing GBP350 million facility.
