TP ICAP Confirms Axiom Acquisition, Reports Revenue Stagnation

TP ICAP,  , has today confirmed rumours that it has acquired Axiom Commodity Group, a US-based energy and commodities brokerage firm. The initial payment for the acquisition is $15.1 million in cash.
According to the regulatory filing, a further $3.1 million will be paid over three years and, depending on the performance of the business over this time frame, an extra $10.9 million will also be paid to the commodities broker.

Following the acquisition, Axiom will become part of TP ICAP’s Energy & Commodities division. As reported by , Axiom has a large presence in natural gas, petroleum, power, biofuels and grains markets, allowing TP ICAP to expand its footprint in these markets.
TP ICAP reports stagnant revenues
As we previously reported, it was largely expected that the announcement of the deal would coincide with TP ICAP revealing its financial results for the four months ended October 31, 2018, which the firm also published today.
During this four-month period, revenue was flat, coming in at £568 million ($739.8 million), up 1 per cent from the revenue of £562 million experienced in the same time period last year. Year to date (January to October), the firm achieved a revenue of £1.478 billion. This is down by 1 per cent year-on-year from £1.487 billion, but up 3 per cent at constant exchange rates.
According to the statement, the flat revenue is a reflection of mixed market conditions during the period. Global Broking revenue was in line with the prior year, with both rates and equities performing well. Revenue for energy and commodities also came in around the same value as the four months ended October 31, 2017. The company’s , on the other hand, saw strong revenue growth in the period of 11 per cent.