Time will tell whether the sale of the ICAP brand and subsequent rebrand was a wise decision by the current CEO.
ICAP Plc will rename itself as NEX Group Plc once it sells its global broking business to Tullett Prebon Plc, completing its transformation into a specialist in electronic markets and post-trade services. Chief Executive Officer Michael Spencer needed to find a new name after agreeing to include the ICAP brand in the 1.1 billion-pound ($1.5 billion) sale of the ICAP Global Broking Business in November. The deal will complete ICAP’s shift away from voice broking, a business that has suffered from shrinking margins and increased regulation. Tullett plans to make the combined voice-broking business more profitable by cutting infrastructure, technology and operations costs. While Tullett may decide to reduce the number of voice brokers after completing the acquisition, it has no plans to do so during the first year of life for the combined business.