ICAP, an interdealer broker, has agreed to acquire the transactions division of Ocean Tomo for an initial consideration of USD10m at closing, comprising USD5m in cash and USD5m of restr
ICAP, an interdealer broker, has agreed to acquire the transactions division of Ocean Tomo for an initial consideration of USD10m at closing, comprising USD5m in cash and USD5m of restricted ICAP 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.
Michael Spencer (pictured), group chief executive officer at ICAP, says: ‘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. 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.’
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.
Becker says: ‘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.’
Industry analysts estimate that the current total asset value of global patents is more than USD10trn and growing.
