Item 7.01 Regulation FD Disclosure.
On August 1, 2024, Tradeweb Markets Inc. (“Tradeweb Markets”) issued a press release announcing the closing of the acquisition of the Institutional Cash Distributors business described in Item 8.01 below. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated into this Item 7.01 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01 Other Events.
On August 1, 2024, Tradeweb Markets LLC (the “Buyer”), a Delaware limited liability company and a subsidiary of Tradeweb Markets (together with Buyer and its other subsidiaries, the “Company”), completed its acquisition (the “Acquisition Closing”) of the Institutional Cash Distributors business by purchasing all of the outstanding equity interests of each of ICD Holdco and the Blockers (each as defined below), pursuant to the previously announced Purchase and Sale Agreement, dated April 5, 2024 (the “Purchase Agreement”), by and among the Buyer, ICD Intermediate Holdco 1, LLC, a Delaware limited liability company (“ICD Holdco”), ICD Holdings, LLC, a Delaware limited liability company (the “ICD Seller”), Stellus Capital Investment Corporation, a Maryland corporation (the “Stellus Blocker Seller”), Parthenon Investors V ICD Holdco AIV, LP, a Delaware limited partnership (the “Parthenon Blocker Seller” and, together with the ICD Seller and the Stellus Blocker Seller, the “Sellers”), SCIC - ICD Blocker 1, Inc., a Delaware corporation (the “Stellus Blocker”), Parthenon Investors V ICD Blocker, Inc., a Delaware corporation (the “Parthenon Blocker” and, together with the Stellus Blocker, together the “Blockers”), ICD Holdings, LLC, in its capacity as the initial Seller Representative thereunder, and Tradeweb Markets, solely for purposes of Section 10.21 thereof.
The acquisition was funded with cash on hand and completed for a base purchase price of $785 million, subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses of ICD Holdco and its subsidiaries. In connection with the Acquisition Closing, Tradeweb Markets also issued and sold $4.5 million of shares of its Class A common stock (the “Class A Shares”) in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), to an equityholder of the ICD Seller, which Class A Shares were issued and sold as restricted stock, subject to vesting and forfeiture terms, pursuant to the Tradeweb Markets Inc. 2019 Omnibus Equity Incentive Plan.
The acquisition and the Purchase Agreement described above are more fully described in Tradeweb Markets’ Current Report on Form 8-K filed with the Securities and Exchange Commission on April 8, 2024.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.