Integrated Asset Management, an alternative investment manager and institutional brokerage group quoted on the Alternative Investment Market of the London Stock Exchange is buying International Capital Markets SIM S.p.A (ICM), an Italian money broking business based in Milan.
Integrated plans to combine ICM’s operations with its existing Italian broking subsidiary, Interfin SIM and the Italian branch of Integrated Financial Products, Integrated’s London based brokerage unit. The company says the acquisition brings further experienced management with decades of experience. “Owing to the nature of the businesses, significant cost savings will arise as the operating platform and marketing costs are brought together,” says the company. “Based on historical results, the combined entity will handle about 50% of the total volume of the Italian institutional interest rate derivatives brokerage market.”
ICM is part of the international brokerage network, “European Brokers Network”. This Group is active in six European countries and will enable Interfin to expand its distribution base further.
In its most recent full fiscal year ended 31 December 2003, ICM had profit before tax of €425,950 on turnover of €3,397,667.
Integrated will pay for this acquisition through a combination of cash and shares. The initial consideration will be €1,500,000 cash and 176,947 Ordinary shares of Integrated. ICM has cash resources of about €1,900,000. The other instalments will be paid on the achievement of certain profitability milestones and shall not exceed a total of €1,450,000, payable in cash and shares.
Emanuel Arbib, chief executive of Integrated commented that “the agreement with ICM shareholders was finalised swiftly after negotiations in which we shared broadly similar views on the growth of the two companies. This acquisition will allow us to consolidate our position and become a leader in this niche market.”
Sergio Zora, president and the main shareholder of ICM added that “for years we have been growing our market share in the Italian institutional brokerage market. However, in order to reach a higher volume and compete in the European market, we decided to join a fast-growing and dynamic group such as Integrated. We are confident that the synergies of the brokerage services, together with Integrated’s other alternative investment activities and the distribution of hedge funds, will allow us to achieve significant growth.”
The acquisition is subject to Bank of Italy approval and Integrated’s acceptance of an independent auditors report.