Press Release: Tradeweb Markets Inc., a prominent global operator of electronic marketplaces dealing with rates, credit, equities, and money markets, has declared its intent to acquire Institutional Cash Distributors, LLC (“ICD”), an institutional investment technology provider for corporate treasury organizations involved in trading short-term investments.
The acquisition will be finalized at $785 million, with customary adjustments. The purchase will be financed through existing cash reserves.
Expanding Client Base: Entering New Terrain
By assimilating ICD and its advanced proprietary technology, Tradeweb will extend its reach into a burgeoning client segment catering to corporate treasury professionals.
This venture will complement Tradeweb’s existing focus on institutional, wholesale, and retail clients. ICD, established in 2003, serves over 500 corporate treasury organizations globally, including a notable presence among Fortune 100 companies.
Their services span across 65 industries and over 45 countries, facilitating investments in money market funds and other short-term products to manage liquidity.
With average daily balances exceeding $230 billion in 2023, ICD stands as a significant player in the U.S. institutional money market fund arena, boasting exceptional client retention and satisfaction rates.
Core Offerings and Synergies
ICD’s flagship products, ICD Portal and ICD Portfolio Analytics, offer comprehensive solutions.
The portal serves as a hub for researching, trading, analyzing, and reporting on investments from over 40 providers.
Portfolio Analytics, powered by AI, aggregates positions across a corporate treasury’s portfolio for in-depth analysis and reporting.
Tradeweb envisions a holistic solution for corporate treasurers and asset managers worldwide, optimizing liquidity management, FX risk mitigation, and yield optimization.
Leveraging Tradeweb’s suite of products, ICD clients will integrate seamlessly with leading third-party treasury management systems while benefiting from enhanced portfolio analytics.
Strategic Alignment and Future Outlook
Billy Hult, CEO of Tradeweb, expressed enthusiasm about the strategic alignment with ICD, seeing it as a pivotal move to diversify client offerings and venture into adjacent markets.
The acquisition positions Tradeweb to drive electronic trading adoption among corporate treasurers.
Tory Hazard, CEO of ICD, echoed the sentiment, highlighting the synergistic potential of the combined offerings.
The acquisition promises to unlock greater value for corporate treasury clients.
Financial Outlook and Transaction Details
The acquisition is expected to enhance Tradeweb’s earnings per share within the first 12 months post-closing and align with its return on invested capital objectives.
Pending customary closing conditions and regulatory approvals, the transaction is slated for completion in the latter half of 2024.
About Tradeweb Markets and ICD
Tradeweb Markets Inc. (Nasdaq: TW) is a leading provider of electronic marketplaces for rates, credit, equities, and money markets, facilitating trading activities for clients across the globe.
Founded in 1996, Tradeweb serves over 2,500 clients in more than 70 countries.
ICD is a trusted institutional investment technology provider, offering workflow solutions for independent research, trading, analytics, and investment reporting to the institutional investment community for over two decades.