Icap (IAP.L), the interdealer broker, has agreed to acquire the transactions division of Ocean Tomo LLC, the Intellectual Capital Merchant Banc firm, for an initial consideration of USD10 million at closing, comprising USD5 million in cash and $5 million of restricted Icap plc stock.
Application will be made for the listing of 692,226 ordinary shares of 10p each which have been conditionally allotted as satisfaction for the stock consideration. The agreement also provides for a long term license to the Ocean Tomo brand and mutual referral. The transaction closed on 15 June, 2009.
The Ocean Tomo transactions business includes the Intellectual Property Live Auction venue, a Private Sale Brokerage unit, the Patent Bid/ Ask Platform and “The Deans List”. Ocean Tomo’s Vice Chairman, Dean Becker, and nine employees will be joining ICAP.
Intellectual property (IP) assets are increasingly drivers of business success. Industry analysts estimate that the current total asset value of global patents is more than $10 trillion and growing. Patent monetization is a global business empowering innovative companies to hedge their ideas on future economic benefits.
“Patent brokerage is an exciting new field that will help to provide a marketplace and access to liquidity for an asset that has historically not been served by a vibrant trading market. It offers participants new opportunities to monetize intellectual property and to diversify investment portfolios with a new non-correlated asset type,” says Michael Spencer, group chief executive officer, ICAP plc.
“The combination of ICAP’s existing successful patent brokerage business and the Ocean Tomo brand will help us build a leadership position in the global patent and intellectual property broking market.””We are excited to join ICAP as this transaction offers us the opportunity to grow the business further and help the market reach its full potential,” says Dean Becker, vice chairman, Ocean Tomo.
L.D.