Tradeweb Markets Acquires Investment Tech Firm ICD for $785 Million to Strengthen Treasury Services
Tradeweb Markets, a rates and credit trading platform, announced on Monday its acquisition of Institutional Cash Distributors (ICD), an investment technology firm, for $785 million. This move aims to enhance Tradeweb’s offerings to corporate treasury professionals amid a flurry of mergers and acquisitions within the trading and brokerage sector.
Recent years have seen significant consolidation in the industry, with notable transactions such as Nasdaq acquiring regulatory reporting and capital markets software company Adenza, and Intercontinental Exchange, the owner of the New York Stock Exchange, purchasing mortgage software and analytics firm Black Knight.
Founded in 2003, ICD specializes in facilitating investments in money market funds and other short-term investment products for corporate treasury teams. It boasts a client base that includes nearly 17% of the corporations listed in the S&P 100 index. Additionally, ICD offers services in trade, investment analysis, and research, maintaining a client retention rate of 99%.
Tradeweb anticipates that this acquisition, which is slated for completion in the second half of 2024, will bolster its position in the fixed income trading market. The purchase will be funded through available cash reserves.
Tradeweb’s shares have experienced a 12.7% increase year-to-date as of the last week’s closing. J.P. Morgan Securities served as Tradeweb’s primary financial advisor for this transaction, with Raymond James and Moelis & Company providing advisory services to ICD.
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