INTL FCStone to Purchase Tellimer Group’s Brokerages12.16.2019
INTL FCStone Inc. has executed a definitive sale-and-purchase agreement to acquire the brokerage businesses of Tellimer Group (“Tellimer” or “the Group”). This transaction will involve the purchase of Exotix Partners LLP, Tellimer Capital Ltd (Nigeria) and the broking business of Tellimer Markets Inc. The closing of this transaction is subject to limited conditions including regulatory approval.
Tellimer (formerly Exotix) has been a leader for twenty years in providing institutional investors, corporates, and governments access to the most dynamic and complex financial markets in the world. With offices in London, Dubai, Lagos, and New York, the broking business covers over 170 trading markets in Equities and Fixed Income, specializing in emerging and frontier markets. As part of the deal, Tellimer’s unique research will be distributed to INTL’s clients, to complement INTL FCStone’s Securities offering globally. The acquisition price is not material to INTL FCStone Inc.
Once the transaction is completed, Tellimer will continue to provide unique research, research distribution, technology, analytics, and advisory services, from London, New York, Dubai, Singapore, Nairobi, and Lagos.
Jacob Rappaport, Head of Equities for INTL FCStone Inc. commented on the news: “We’re thrilled to incorporate Tellimer Group’s broking team and offerings into our extensive Securities business globally. The addition expands our reach by providing access to new markets, capabilities, and specialized expertise. The capability of the broking business fits extremely well with our existing equities and fixed income businesses, and we believe the integration of our product portfolio, global client base, and large balance sheet will enhance INTL FCStone.”
Duncan Wales, CEO of Tellimer Group, said: “This transaction represents the next step in the Tellimer Group strategy which is focused on the development of our innovative proprietary technology platform and the expansion of leading information and connectivity services to our clients. We genuinely believe INTL FCStone will enhance the reach and scale of the broking business. Additionally, we are delighted that INTL FCStone has also chosen Tellimer as their third-party research content provider and delivery platform to enhance their securities offering.”
The deal should boost the firm's LME operations in Germany, say officials.
Schwab estimates a $1.8B to $2B run-rate expense synergies within three years of the deal's close.
The acquisition extends the vendor's SaaS offerings to private debt markets.
The purchase should bolster the firm's trading technology and quantitative research.
The acquisition will bring approximately $3.7 billion AUM to the independent wealth manager.