Icap buys EBS currency broker for $775m

London-based inter-dealer broker Icap has bought currency broker EBS for $775 million in cash.

EBS, based in London, operates a spot foreign exchange dealing system, which handles approximately $130 billion in forex transactions per day.

Icap says it will merge EBS with its own electronic broking business, a move it estimates will save $32 million in annual costs by 2009. The takeover is Icap's largest since 2003.

Michael Spencer, chief executive of Icap, said: "We have been very clear that our strategy is to grow Icap’s business both organically and by selected acquisition. In parallel with the continuing development of our voice-broking business and the development of new markets, this acquisition takes us further towards our goal of offering comprehensive electronic execution and post-trade services for liquid, commoditised markets.”