- Adds Corporates as Fourth Client Channel for Tradeweb Alongside
Institutional, Wholesale and Retail
- Capitalizes on Tradeweb’s Capabilities in Money Markets and
Rates, Provides Additional Cross-Selling and Expansion
Opportunities, Enhances Tradeweb’s Relationships Across the Global
Asset Management Sector
- Enhances Tradeweb’s Growth Profile by Adding An Estimated $2+
Billion Addressable Market, Adjusted Earnings Per Share Accretion
Expected in First 12 Months Following Closing
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today announced it has entered into a definitive agreement
to acquire Institutional Cash Distributors, LLC (“ICD”), an
institutional investment technology provider for corporate treasury
organizations trading short-term investments, for $785 million,
subject to customary adjustments. The purchase price is expected to
be funded with cash on hand.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240408912925/en/
Billy Hult, CEO, Tradeweb Markets (Photo:
Business Wire)
Tradeweb Expands into New, Fast-Growing Client Channel with
Addition of Corporate Treasurer Network
With the acquisition of ICD and its powerful, proprietary
technology, Tradeweb will add a new and fast-growing client channel
serving corporate treasury professionals, complementing Tradeweb’s
existing focus on institutional, wholesale and retail clients.
Established in 2003, ICD enables more than 500 corporate treasury
organizations from growth and blue-chip companies (including
approximately 17% of the S&P 100 as of December 31, 2023)
across 65 industries and more than 45 countries to invest in money
market funds and other short-term products to manage liquidity. ICD
is one of the largest U.S. institutional money market fund portals,
and in 2023, had average daily balances of more than $230 billion.
The company has a stable, growing and loyal client base, with 99%
client retention and an exceptional net promoter score.
ICD’s flagship products include ICD Portal and ICD Portfolio
Analytics. The portal is a one-stop shop to research, trade,
analyze, and report on investments across more than 40 available
investment providers primarily offering money market funds and
access to other short term products including deposits, fixed term
funds and separately managed accounts (SMAs). Portfolio Analytics
is an AI-driven cloud solution for aggregating positions across a
corporate treasury's entire portfolio for analysis and
reporting.
Compelling Opportunities for Cross-Selling and Strategic
Growth
As part of Tradeweb, ICD will provide a comprehensive solution
for corporate treasurers and asset managers worldwide to manage
short-term liquidity needs and FX risk, as well as optimize yield
and duration via Tradeweb’s existing suite of products. ICD clients
will retain the ability to fully integrate their workflows with
leading third-party treasury management and accounting systems and
ICD’s portfolio analytics solution. In addition to opportunities to
cross-sell Tradeweb’s products to ICD’s clients, Tradeweb will aim
to accelerate ICD’s growth and expansion by leveraging Tradeweb’s
international presence and offering money market funds to
Tradeweb’s existing network of clients globally.
Strong Strategic and Cultural Fit With Opportunity to
Electronify Trading for Corporate Clients
Tradeweb CEO Billy Hult said: “ICD is an exceptional opportunity
to acquire a leading investment platform for corporate treasurers,
a fast-growing channel within fixed income markets and a strong
strategic fit for Tradeweb. Acquiring ICD will further diversify
our client and business mix, advancing our track record of
expanding into adjacent markets to improve client workflows. As
part of Tradeweb, ICD will also be positioned to drive the adoption
of electronic trading for corporate treasurers. We look forward to
welcoming the talented ICD team onboard, who share Tradeweb’s
unwavering commitment to delivering innovative products and
extraordinary service, and to jointly creating even greater value
for our clients and shareholders.”
Upon closing of the transaction, ICD’s CEO Tory Hazard will
report to Tradeweb President Thomas Pluta and will join Tradeweb’s
Operating Committee.
Mr. Hazard said: “We could not have found a better partner than
Tradeweb to continue providing innovative technology and
exceptional service to our clients. This acquisition will enable
ICD clients to have integrated access to Tradeweb’s fixed income
marketplace, while continuing to trade through our existing
technology. The combined offering delivers even more of what
corporate treasury wants, and together, we will be able to unlock
the full potential of our technology.”
The acquisition is expected to be accretive to Tradeweb’s
adjusted earnings per share in the first 12 months following
closing and meet Tradeweb’s return on invested capital objectives.
Completion of the transaction is expected in the second half of
2024, subject to customary closing conditions and regulatory
review.
J.P. Morgan Securities LLC served as the lead financial advisor
to Tradeweb. Morgan Stanley & Co LLC also provided advice.
Fried, Frank, Harris, Shriver & Jacobson LLP served as legal
advisor. Parthenon Capital Partners was the primary investor in
ICD. Raymond James and Moelis & Company LLC served as its
financial advisors, and Kirkland & Ellis LLP served as its
legal advisor.
Transaction Conference Call
Tradeweb will hold a conference call to discuss the transaction
later today, Monday, April 8, 2024 at 9:30 AM EDT. A live, audio
webcast of the conference call along with related presentation
materials will be available at
https://investors.tradeweb.com/events-and-presentations.
- To join the call via audio webcast, click here:
https://edge.media-server.com/mmc/p/4vrn7eeb
- To join the call via phone, please register in advance here:
https://register.vevent.com/register/BIc80eba6f4d894d428fa8ebad64e903b7
Registered participants will receive an email confirmation with a
unique PIN to access the conference call.
An archived recording of the call will be available afterward at
https://investors.tradeweb.com
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets. Founded in 1996, Tradeweb provides access to markets, data
and analytics, electronic trading, straight-through-processing and
reporting for more than 50 products to clients in the
institutional, wholesale and retail markets. Advanced technologies
developed by Tradeweb enhance price discovery, order execution and
trade workflows while allowing for greater scale and helping to
reduce risks in client trading operations. Tradeweb serves more
than 2,500 clients in more than 70 countries. On average, Tradeweb
facilitated more than $1.5 trillion in notional value traded per
day over the past four quarters. For more information, please go to
www.tradeweb.com.
About ICD
ICD is a trusted provider of institutional investment
technology. For more than two decades, ICD has developed workflow
solutions to assist organizations with independent research,
trading, analytics and investment reporting. ICD’s many
award-winning solutions co-innovated with clients demonstrate its
commitment to serving the needs of the institutional investment
community.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws. Statements related to,
among other things, our proposed acquisition of ICD, the
anticipated timing of the proposed acquisition, the potential
benefits of the proposed acquisition, our plans, objectives,
expectations and intentions regarding ICD, our and ICD’s future
performance, the industry and markets in which we and ICD operate,
as well as our other expectations, beliefs, plans, strategies,
objectives, prospects and assumptions and other future events are
forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. Risks and uncertainties
include, among others, risks related to our ability to consummate
the proposed acquisition on a timely basis or at all, secure
regulatory approvals on the terms expected, successfully integrate
ICD’s operations, implement our plans, objectives, expectations and
intentions with respect to ICD’s business and realize the expected
benefits and synergies from the proposed acquisition. These and
other important factors, including those discussed under the
heading “Risk Factors” in documents of Tradeweb Markets Inc. on
file with or furnished to the SEC, may cause actual results,
performance or achievements to differ materially from those
expressed or implied by these forward-looking statements. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements contained in this release are not guarantees of future
performance and our actual results of operations, financial
condition or liquidity, and the development of the industry and
markets in which we operate, may differ materially from the
forward-looking statements contained in this release. In addition,
even if our results of operations, financial condition or
liquidity, and events in the industry and markets in which we
operate, are consistent with the forward-looking statements
contained in this release, they may not be predictive of results or
developments in future periods.
Any forward-looking statement that we make in this release
speaks only as of the date of such statement. Except as required by
law, we do not undertake any obligation to update or revise, or to
publicly announce any update or revision to, any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this release.
Market and Industry Data
This press release includes estimates regarding market and
industry data, including addressable market related to certain
corporate treasury activities, that we prepared based on our
management’s knowledge and experience in the markets in which we
operate, together with information obtained from various sources,
including ICD, publicly available information, industry reports and
publications, surveys, our clients, trade and business
organizations and other contacts in the markets in which we
operate. In presenting this information, we have made certain
assumptions that we believe to be reasonable based on such data and
other similar sources and on our knowledge of, and our experience
to date in, the markets in which we operate. While such information
is believed to be reliable for the purposes used herein, no
representations are made as to the accuracy or completeness thereof
and we take no responsibility for such information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240408912925/en/
Media contact: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor contact: Ashley Serrao, Tradeweb +1 646 430 6027
Ashley.Serrao@Tradeweb.com
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