Axiom Commodity Group

TP ICAP Confirms Acquisition of Axiom Commodity Group, Also Reports Flat Revenue Growth

TP ICAPTP ICAP plc, the global professional intermediaries that operate in the financial, energy and commodities markets has confirmed the acquisition of US-based energy and commodity brokerage firm, Axiom Commodity Group. The final acquisition price has not been disclosed by the company but it said, the initial payment of $15.1 million for the acquisition will be made in cash.

As per the regulatory filing, further $3.1 million be done based on financial performance over the three years period and extra $10.9 million will be paid to the commodities broker. Following the completion of the acquisition process, Axiom will become part of TP ICAP’s Energy & Commodities division allowing TP ICAP to expand its footprint. Axiom has a large presence in the natural gas, petroleum, biofuels, power and grains markets.

Nicolas Breteau, the Chief Executive of TP ICAP said on the acquisition: 

“I am also pleased to announce the acquisition of Axiom Commodity Group, an energy and commodities broker based in the US.  The purchase of Axiom, which has 22 brokers and specializes in crude oil, refined oil products, ethanol and physical grains, continues the expansion of our Energy & Commodities division and reinforces our existing presence in Houston, Texas.”

Nicolas Breteau, Chief Executive of TP ICAP
Nicolas Breteau, Chief Executive of TP ICAP

TP ICAP also reported the four months financial results which ended on October 31, 2018. Revenue for the firm was reported flat at £568 million ($739.8 million), a slight increase of 1 per cent compared to the same period last year. Year to date, the firm achieved a revenue of £1.478 billion, a slight reduction of 1 per cent compared to the same period the previous year.

According to the statement by the company, the revenue expectation was in line with the market conditions. Global broking revenue was in line with the previous year’s, with both rates and equities performing satisfactorily. Revenue for energy and commodities were also in the same line around the company’s previous year’s value. The Data & Analytics business witnessed strong revenue growth at 11 per cent during the period.

Nicolas Breteau said on the result:

“Today’s trading update demonstrates that TP ICAP is well placed to grow in mixed market conditions, characterized by periodic volatility that we saw in October following the US Federal Reserve’s rates decision.”

“This underlines our firmly-held belief that investing in growth areas such as Data & Analytics will benefit TP ICAP over the longer-term as we develop solid and scalable revenues across our global businesses.”