Tradeweb Markets Inc., a global operator of electronic
marketplaces for rates, credit, equities, and money markets, has announced its
definitive agreement to acquire Institutional Cash Distributors, LLC (“ICD”), an
institutional investment technology provider catering to corporate treasury
organizations. The acquisition, valued at $785 million, is subject to customary
adjustments and is expected to be funded through cash on hand.
With this strategic move, Tradeweb aims to diversify and
enhance its client base by tapping into the corporate treasury market, which is
experiencing rapid growth. Established in 2003, ICD serves over 500 corporate
treasury organizations worldwide, including approximately 17% of the S&P
100 companies as of December 31, 2023.
The company facilitates investments in
money market funds and other short-term products, managing liquidity for its clients
across 65 industries and more than 45 countries. In 2023 alone, ICD recorded
average daily balances exceeding $230 billion.
Billy Hult, the CEO, Tradeweb, said: “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 be positioned to drive the adoption of electronic
trading for corporate treasurers.”
ICD’s flagship products, including ICD Portal and ICD
Portfolio Analytics , offer comprehensive solutions for researching, trading,
analyzing, and reporting on investments. The portal provides access to over 40
investment providers, primarily offering money market funds, fixed-term funds,
and separately managed accounts. Meanwhile, Portfolio Analytics leverages
AI-driven technology to aggregate positions across corporate treasuries’ entire
portfolios for in-depth analysis and reporting.
Today we announced that Tradeweb has agreed to acquire @ICDPortal, a leading independent, multi-fund investment platform for corporate treasury professionals, adding Corporates as our fourth client channel. Read more: https://t.co/9sPxcXxYj1 pic.twitter.com/4I6rX6aAoV
— Tradeweb (@Tradeweb) April 8, 2024
Enhancing Corporate Treasury Solutions Worldwide
By integrating ICD into its operations, Tradeweb aims to
offer a solution for corporate treasurers and asset managers worldwide,
addressing their short-term liquidity needs and FX risk while optimizing yield
and duration. Additionally, ICD clients will retain the ability to integrate
their workflows with leading third-party treasury management and accounting
systems, enhancing operational efficiency.
The acquisition aligns well with Tradeweb’s strategic
objectives, aiming to expand its product offerings and leverage its
international presence to accelerate ICD’s growth and global expansion.
Moreover, Tradeweb
plans to capitalize on cross-selling opportunities between its existing client
base and ICD’s offerings.
The transaction is anticipated to be accretive to Tradeweb’s
adjusted earnings per share within the first 12 months post-closure,
aligning with the company’s return on invested capital objectives. The completion of the acquisition is expected in the second
half of 2024, pending customary closing conditions and regulatory approvals.
Tradeweb Markets Inc., a global operator of electronic
marketplaces for rates, credit, equities, and money markets, has announced its
definitive agreement to acquire Institutional Cash Distributors, LLC (“ICD”), an
institutional investment technology provider catering to corporate treasury
organizations. The acquisition, valued at $785 million, is subject to customary
adjustments and is expected to be funded through cash on hand.
With this strategic move, Tradeweb aims to diversify and
enhance its client base by tapping into the corporate treasury market, which is
experiencing rapid growth. Established in 2003, ICD serves over 500 corporate
treasury organizations worldwide, including approximately 17% of the S&P
100 companies as of December 31, 2023.
The company facilitates investments in
money market funds and other short-term products, managing liquidity for its clients
across 65 industries and more than 45 countries. In 2023 alone, ICD recorded
average daily balances exceeding $230 billion.
Billy Hult, the CEO, Tradeweb, said: “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 be positioned to drive the adoption of electronic
trading for corporate treasurers.”
ICD’s flagship products, including ICD Portal and ICD
Portfolio Analytics , offer comprehensive solutions for researching, trading,
analyzing, and reporting on investments. The portal provides access to over 40
investment providers, primarily offering money market funds, fixed-term funds,
and separately managed accounts. Meanwhile, Portfolio Analytics leverages
AI-driven technology to aggregate positions across corporate treasuries’ entire
portfolios for in-depth analysis and reporting.
Today we announced that Tradeweb has agreed to acquire @ICDPortal, a leading independent, multi-fund investment platform for corporate treasury professionals, adding Corporates as our fourth client channel. Read more: https://t.co/9sPxcXxYj1 pic.twitter.com/4I6rX6aAoV
— Tradeweb (@Tradeweb) April 8, 2024
Enhancing Corporate Treasury Solutions Worldwide
By integrating ICD into its operations, Tradeweb aims to
offer a solution for corporate treasurers and asset managers worldwide,
addressing their short-term liquidity needs and FX risk while optimizing yield
and duration. Additionally, ICD clients will retain the ability to integrate
their workflows with leading third-party treasury management and accounting
systems, enhancing operational efficiency.
The acquisition aligns well with Tradeweb’s strategic
objectives, aiming to expand its product offerings and leverage its
international presence to accelerate ICD’s growth and global expansion.
Moreover, Tradeweb
plans to capitalize on cross-selling opportunities between its existing client
base and ICD’s offerings.
The transaction is anticipated to be accretive to Tradeweb’s
adjusted earnings per share within the first 12 months post-closure,
aligning with the company’s return on invested capital objectives. The completion of the acquisition is expected in the second
half of 2024, pending customary closing conditions and regulatory approvals.
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- Source: https://www.financemagnates.com//institutional-forex/tradeweb-expands-reach-with-785-million-acquisition-of-icd/
