By Sridhar Natarajan and Matthew Monks – April 8, 2024
- It’s the third deal since CEO Billy Hult took reins in 2023
- ICD provides software to 500 corporate treasury organizations
Tradeweb Markets Inc. has struck an agreement to buy investment-technology provider Institutional Cash Distributors as it seeks growth beyond its core rates-trading business.
The electronic-trading platform, long known for its fixed-income offerings, will pay about $785 million in its biggest acquisition yet, according to people with knowledge of the matter, who asked not to be named discussing non-public information. The deal will give Tradeweb access to one of the largest U.S. institutional money-market fund portals that works with about 500 corporate treasury organizations.
It’s the third purchase the company has made since the start of 2023, when Billy Hult took over as the chief executive officer. While the rates business still accounts for half its revenue, the company has sought to embrace different asset classes as it seeks to refashion itself as a one-stop trading shop.
Representatives for ICD and Tradeweb declined to comment.
In the last five years, Tradeweb has doubled its revenue and about 80% of its business comes from rates and credit products. It’s stock has soared 280% since its 2019 debut, giving it a valuation of roughly $24 billion.
ICD provides software to corporate treasurers that helps them manage short-term investments, with a particular focus on money market funds, which are popular because they’re a liquid way to store cash. The technology firm announced a growth investment from Parthenon Capital in 2017.
Tradeweb mainly services asset managers, hedge funds and other institutional investors but it also has products for the wholesale and retail market. With ICD, it will have access to the corporate channel.
