Tradeweb has entered into a definitive agreement to purchase Institutional Cash Distributors (ICD), an investment platform based in Colorado, for $785 million with the deal expected to close in the second half of 2024.
Operating as an institutional money market fund portal, ICD provides investment technology for corporate treasury organisations trading short-term investments, and sported a daily balance average of more than $230 billion in 2023.
The all-cash deal, which remains subject to regulatory review, will see Tradeweb envelop both ICD’s portal, which facilitates insight into and trading with around 40 short-term investment providers, and its accompanying AI-driven portfolio analytics solution, which aggregates positions across corporate treasury portfolios for analysis and reporting.
In the first year after acquiring ICD, the electronic marketplaces operator expects its adjusted earnings per share to be accretive as its addressable market expands by over $2 billion.
Moreover, the New York-headquartered firm states that it intends to “accelerate ICD’s growth and expansion” by utilising its global reach and providing money market funds to its own established client base.
Speaking on the deal, Tradeweb CEO, Billy Hult, claims the acquisition will “further diversify our client and business mix” while continuing its history of “expanding into adjacent markets to improve client workflows”.
Following the completion of the transaction, ICD CEO, Tory Hazard, will report to Tradeweb president, Thomas Pluta, as the newest member of the firm’s operating committee.
“This acquisition will enable ICD clients to have integrated access to Tradeweb’s fixed-income marketplace, while continuing to trade through our existing technology”, asserts Hazard.
The deal for ICD adds to Tradeweb’s growing portfolio of fintech acquisitions, including the firm’s move for Aussie trading platform Yieldbroker in an all-cash deal worth $82 million last year.
Source: fintechfutures.com
