ICAP to become NEX Group as part of Tullett Prebon deal
City broking firm ICAP is to change its name to NEX Group as part of its deal to sell its hybrid voice broking arm to Tullett Prebon.
ICAP chief executive Michael Spencer said that he will now focus on turning the company into a market leader in technology.
"Our ambition is to create the world's leading multi-product, global electronic transaction network for over-the-counter products and post-trade services. A new name for a new company that intends to lead the market in technology innovation in global financial markets," he said.
The name change was a condition of the sale of its broking unit to Tullett for £1.1 billion, which will itself be rebranded Tullett ICAP. The deal is expected to close later this year.
The rebranding was announced alongside full-year results, which saw revenues dip slightly and pre-tax profit fall 6% from £95 million to £89 million.
Mr Spencer added: "Trading conditions continue to be challenging as a result of the macro economic environment, historically low and negative interest rates and continued bank deleveraging. These headwinds have naturally impacted our performance during the year."
Trading profit before tax was down 11% at £203 million, and Shore Capital analyst Paul McGinnis dubbed the results "disappointing".
He said: "While we had expected our forecasts, originally struck after the interim results, to be challenging in the light of a weaker third quarter update in February, we still regard these results as disappointing."