Consideration includes about $1.89 billion in cash, $82 million in equity
Tradeweb Markets agreed to buy fixed-income trading platform Trumid for about $1.97 billion, The Wall Street Journal reported Oct. 19. The deal will position Tradeweb earlier in the credit lifecycle and expand its capabilities into grey markets, according to the Journal.
“We believe U.S. credit represents a significant long-term growth opportunity, particularly as the market continues to embrace electronic execution and as clients seek increasingly sophisticated solutions to navigate liquidity and achieve better outcomes,” Tradeweb CEO Billy Hult said.
The transaction price includes $1.75 billion for the business and about $220 million for tax assets being acquired. Total consideration will consist of about $1.89 billion in cash, subject to adjustments, and $82 million in equity.
Trumid has described itself as “one of the leading venues for electronic new issue trading, in part driven by our unique ability to provide trading and pricing transparency in grey markets.”
Trumid’s investors have included George Soros, Peter Thiel, Point Break Capital Management and Delphi Financial Group.
Tradeweb expects the deal to add to adjusted earnings per share within the first full year following closing. On Oct. 6, Tradeweb said September total trading volume was $81.6 trillion, with average daily volume up 29%.